Dow "Death Cross"-es For First Time In 4 Years

Tyler Durden's picture

Just as we warned yesterday, unless the Dow can miraculously rally over 17,850, The Dow will close in a Death Cross pattern. This is the first time that the 50-day moving average crosses below the 200-day moving average since August 2011 (which was followed by a 1300 point swing from high to low in The Dow)...


For the first time since Aug 2011, The Dow Death Cross'd...


And this is what happened last time...


After a reflexive bounce, The Dow dumped 1300 points in 4 weeks.

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JustObserving's picture

Nothing that another $4 trillion in QE cannot fix.  Besides, the 0.1% always can do with a few hundred billion more in wealth.

The Fed Won: America's 0.1% Are Now Wealthier Than The Bottom 90%

pods's picture

Wow, I wonder what will happen when Janet raises rates? 



JustObserving's picture

The only time old Yeller will be raising rates will be from her grave like Bernanke.  US debts are just too massive to withstand increased interest rates.

No rate normalization during my lifetime Bernanke

 The U.S. has a $210 trillion “fiscal gap” and “may well be in worse fiscal shape than any developed country, including Greece,” Boston University economist Laurence Kotlikoff told members of the Senate Budget Committee in written and oral testimony on Feb. 25, 2015

“The first point I want to get across is that our nation is broke,” Kotlikoff testified. “Our nation’s broke, and it’s not broke in 75 years or 50 years or 25 years or 10 years. It’s broke today.

StackShinyStuff's picture

Why Tyler Why?  We had a perfectly good down day and you had to go and ruin it!

Bunghole's picture

Look at the title of the article.

sunaJ's picture

I have a dirty mind.  I thought he was just calling him a c*nt for effect.


mtndds's picture


Pareto's picture

right.  got it.  I was thinking what Sunaj was, however.  but yeah, the title - for sure.

Soul Glow's picture

WIth the yuan devaluation China will have less money to invest in USTs.  Less real value in the yuan means they purchase less notional.  This means the Fed will need to print moar money to make up for the lack of demand.


sunaJ's picture

More U.S. devaluation/printing to come for sure,  but not before ZH has a chance to post an article entitled: Dow Death Cross Just Got Deathier.


KnuckleDragger-X's picture

We can't be broke, Yellen still has checks in her check book.....

Headbanger's picture

Rates are going up regardless of the Fed anyway

AgentHarlequin's picture

(Sorry if this is obvious to everyone else)

stant's picture

In a nut shell the market forces. But these rates have done serious damage to pensions, congress has pensions

neuronius's picture

Because, *in the end*, despite all efforts of the central planners, the market decides.

AgentHarlequin's picture

Is there a 'ZH for Dummies' version of this website? Maybe I need to read that to get 'up-to-speed'... It's still not clear to me how market forces will increase Fed/central bank interest rates... Or have I missed the point completely? (often happens)

XAU XAG's picture



If the FED cannot control the bond market...................prices go down and rates go up


HTH AgentH

madcows's picture

however, the FED seems to have limitless funds with which to buy T-Bills and MBS's.  Round and Round it goes.  When it stops, nobody knows.

I think it'd be funny if our own FED has a SNB/PBOC moment, and decides to let shit go.  Just stop buying and let the chips fall.

XAU XAG's picture

But But But


TA is not for manipulated markets LOL

Ghostdog's picture

Better chance of someone fucking her and enjoying it than her raising rates

Haus-Targaryen's picture

Seems like a buying opportunity.  

Hype Alert's picture

It does based on the chart "And this is what happened last time..."  On 8/22/2011 the dow closed at 10854 and moved up to 13279 on 5/1/2012.

firewire888's picture

Testing this death cross on spx data seems the same, the last two times lost money back on the cross probably due to QE.  Think if you wait for the cross back seems more profitable 4 years!!!

12/21/2007 - 1484.46 to 6/22/2009 893.04 - 591.42
7/6/10 - 1022.58 to 10/21/10 - 1180.26 - (157.68) - QE2 11/3/10 after the cross
8/12/11 - 1178.81 to 1/30/12 - 1313.41 - (134.2)  - QE3 9/13/12

slaughterer's picture

Should be good for a 1500 PT dump this time, unless they wheel out another Bullard moment.

Dr. Engali's picture

It was also followed by QE1, so we have that to look forward to.

Infinite QE's picture

"All hands report for duty"

- Open Market Operations Lever Room Supervisor

Pareto's picture

ssssshhhhh.  FFS ZH!! - I just put on my short, and now you gotta fucking ruin it!!   Here come the fucking sqid!!!  lol.  Like a big blow horn announcement!  DOW DEATH CROSSES FOR THE FIRT TIME SINCE 2011.  lol.

FreeMoney's picture

DOW new all time high is imminent.  Calling Mr Bullard....

jpc578's picture

If I remember correctly, August 2011 was the debt ceiling battle. What can the permabulls point to this time to excuse this away?

J Jason Djfmam's picture

They'll blame it on the Trannies.

Tarzan's picture

not a mouse is stirring, nor a whisper heard of the coming debt limit "CRISIS", YET.

These pigs will wait until the last second and then begin scurrying about screaming EMERGENCY in every microphone put in their face, like no one saw it coming.

Next month, after they've kept the people placated with diversions galore and ignoring the elephant in the room, they will act like they have no choice but to huddle in the dead of night, to get their orders from the top, and pass a bill that nobody reads.

It's all the media will talk about, as if they also never saw it coming.

We're being played like a fiddle as we're destroyed from within.  It's a suicide mission orchestrated by international bankers to destroy the dollar and introduce their super safe hack proof electronic currency.

China is just playing along, helping to setup the fall. 

We're surrounded by deceit and the masses have no clue what's right around the corner.  They have no clue that Washington has no real friends in this game.  They will all turn on us one day soon and overnight we'll be the bane of the world, being rightfully blamed for the coming world wide collapse.

MrSteve's picture

like the Lottery, ya gotta play to WIN...the SMA cross is a benchmark in the topping process along with clusters of Hindenberg Omens, three peaks plus a dome and prices got too high.

Mr. Bones's picture


saints51's picture

What would be hilarious is a close above the 200 DMA today all on no volume. 

lehmen_sisters's picture

New record highs , with record low volume. Coming up sir!

madcows's picture

"Rate hike Imminent!"

Spungo's picture

I'm still waiting for the death trapezoid patter in 3month forward future contango reverse contract volatility minis.

neilhorn's picture

SP500 daily is making a trapezoid, or diamond, pattern since 6/10/15. IFIRC this a continuation pattern, signalling the prior trend will continue. Before that date the index had a declining trend from the top.

RichardENixon's picture

This time is different!

Spungo's picture

Why? Death cross typically indicates changing momentum.

SgtShaftoe's picture

What difference do technicals make when the entire market is fake, rigged and owned by treasury?

Racer's picture

It bounced 700 points before falling those 1300 points though

mkucstars's picture

You got your bounce, that was yesterday. That was it, sorry you missed it...

viator's picture

More QE, more ZIRP, elections coming up!