The Dreaded Death Cross Formation Just Hit Stocks

Phoenix Capital Research's picture

Smart investors have noted that the S&P 500 just staged a very dangerous looking move.

That move was when S&P 500’s 50-week moving average broke below its 100-week moving average. You can see this in the green circle below.



This move is called a “Death Cross” and for good reason. The last time it happened was in 2008, right before the entire market CRASHED.



The time before that was right before the Tech Bubble burst, crashing stocks.



In short, going back over 16 years, this Death Cross formation has only hit TWICE before. Both times were when major bubbles burst and stocks Crashed.


On that note, we are already preparing our clients for this with a 21-page investment report titled Stock Market Crash Survival Guide.


In it, we outline precisely how the crash will unfold as well as which investments will perform best during a stock market crash.


We are giving away just 1,000 copies for FREE to the public.


To pick up yours, swing by:


Best Regards


Graham Summers

Chief Market Strategist

Phoenix Capital Research


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Heterodox economics's picture


  • That cult would never die till the stars came right again, and the secret priests would take great Cthulhu from His tomb to revive His subjects and resume His rule of earth. The time would be easy to know, for then mankind would have become as the Great Old Ones; free and wild and beyond good and evil, with laws and morals thrown aside and all men shouting and killing and revelling in joy. Then the liberated Old Ones would teach them new ways to shout and kill and revel and enjoy themselves, and all the earth would flame with a holocaust of ecstasy and freedom. Meanwhile the cult, by appropriate rites, must keep alive the memory of those ancient ways and shadow forth the prophecy of their return.'
swmnguy's picture

Cthulhu 2016! Why settle for the lesser evil?

Vendetta's picture

I thought bad news was good news 

bobert727's picture

And it looks like to me, that the two previous times it crossed, the market rallied before it resumed the decline.

are we there yet's picture

Don't worry Harry Potter works for the FED and will cast a patronus spell to keep the equitey death eaters away. It is all magical.

GreatUncle's picture

Wrong side of the chart, look at the earlier two the death cross is above the chart ... but is it?

More interesting in the chart is the October and January points that to me look seriously like somebody is trying to hold the markets up.

Secret Weapon's picture

I find it hard to make actionable decisions using charts based on fraudulent data. 

Sorry for the DP.

Secret Weapon's picture

I find it hard to make actionable decisions using charts based on fraudulent data. 

any_mouse's picture

Fun facts.

Paper "Gold" ETF vs $SPX vs Gold Miners ETF

Somehow the Gold ETF changes 18% up while the ETF for Miners mining Gold have appreciated 70%. Disconnect, much?

                     $SPX          GLD         GDX
12/31/15    $2,043.94    $101.46    $13.72
05/18/16    $2,047.63    $120.10    $23.56
                     0.18%        18.37%     71.72%

sgorem's picture

OMG! the dreaded double death cross is back!!!!!!!!!!!!!!!

metastar's picture

Surely there must be a Hindenburg Omen and Fibrillation of Doom to corroborate the Quadruple Witching Reaper Bear of Total Destruction ??


Otherwise I suppose we'll just muddle through.

JohnR's picture

Unless the the fib .382 crosses the upper Bollinger Band



stormsailor's picture

i'm waiting for the triple dog death cross myself.  all the rest is just foreplay

any_mouse's picture

On a two year weekly chart this is true. On a shorter time frame daily chart not so much.

Past manipulation is not a predictor of future manipulation.

Like trying to accurately predict the actions of one psychotic individual. Cannot predict the actions in detail, just that it will not be good for you.

"The markets go up and the markets go down." Until that action is restrained unnaturally. Plate tectonics meet the markets.

Tzanchan's picture

I used to think that correlation implied causation but now that I took a statistics class, not so much anymore....or not...

IronPyrite's picture

Don't worry, " It's different this time" So just "BTFD" The Fed will print, print ,print & their "PPT" will buy everything forever!

Dg4884's picture

Yawn.  Didn't we just see this 3 months ago?  Nothing is going to happen to stawks until TPTB decree it be so.

lasvegaspersona's picture


...everything is awesome...SING IT!!!


Tenshin Headache's picture

Hmmn. Already read about this several days ago, right here on ZH.

Attitude_Check's picture

"They" will pull out all the stops to delay this until AFTER the US election in November, but then watch out below.....

swmnguy's picture

I agree with all of the above, even though it's slightly conflicting.  It all depends on what "They" want.  In 2008, "They" had been denying we were on the edge of a crash for a few years, so when it happened, they needed to line up the bailouts before the election, no matter who seemed more likely to win.  They got both Obama  and McCain on board by "pulling it" in September.  When I read in May 2008 that Obama was getting the lion's share of Wall Street contributions, I had the sense that the deal had been done; Obama would be elected; and the bailouts were all lined up, along with impunity for the perpetrators as was subsequently delivered by Holder and Lanny Breuer.

The variable this time is, what do "They" want to line up?  In general, "They" like to have the crash right before the elections, to cement the deals they've made and herd the voters toward "Their" candidate.  Last time the collapse of housing-based financials and the interconnected web of swaps and derivatives made it fairly easy to  see what they were arranging.  This time there isn't such an obvious flashpoint, at least not that I can see.

But it's early yet.  Still mid-May.  I'm guessing it will come more clear in the next two months or so.  I'm sure hoping it's financial, and not the civil-unrest/state of emergency plan finally coming to fruition.

Yukon Cornholius's picture

Did they wait til November the last time?

jughead's picture

Unless "they" would like some nice civil unrest as an excuse to declare a state of emergency and suspend keep us safe of course. 

The Real Tony's picture

Its a head fake the FED will make sure the stock market doesn't crash until the election is over this November. I'd really like to see the 89 percent drop from the '29 crash get bested. Should the bankers unload everything then we could see DOW 1,000 all over again.

Vlad the Inhaler's picture

No they always crash the market right before the election, everyone has already made up their mind anyways, and that gets the new president off the hook because they are only "cleaning up the last president's mess".

swmnguy's picture

The pre-election crash is also used to scare voters toward the "Establishment" candidate as a source of competence and stability, and to provide retroactive justification for the deals that the candidate made to gain the support of "The Establishment."

I remember very clearly in May 2008 reading that then Sen. Obama was getting more in contributions from Wall Street than either Sens. McCain or Clinton.  That to me was a "tell" that Obama had the nod.  At that time, he was being presented as an actual progressive candidate (note the small "p") and a bit of a threat to "The Establishment."  Seeing that detail of financing told me otherwise.  

The next big "tell" about Obama came in late September 2008, when TSHTF and both Obama and McCain promised that, if elected, they would appoint one Timothy F. Geithner to be their Secretary of the Treasury.  That was when I knew Obama would win with Wall Street's support, and that Obama would divert the wealth of the nation through the undead corpse of Finance.

The series of maneuvers indeed gave Obama cover to do what he was going to do anyway, continuing Bush's policies and amplifying them, while blaming Bush for the mess.  Bush's administration certainly deserved the blame, but since Obama merely doubled down on those policies, it clearly went far beyond just the two of them.

As with all these tricks, once you've seen them a couple times it seems so obvious and shopworn, but why would they do anything different if it still works?

cynicalskeptic's picture

But do you REALLY think all is well at the moment?

Sure seems like we're on the verge of all hell breaking loose - 'death cross' or not.

lasvegaspersona's picture

Youtube says

We are about to be told about space aliens

We are already under martial law

China is preparing to use a gold currency

!HILLARY is a space alien (OK that one checks out)

An EMP is imminent

Jade Helm will bring a military take over (oops_)

The pope is a reptile

Obama is straight (OK  I did not actually see that on YT)

We are about to enter an age of great peace (some of these 'tubers are pretty nutso)

A brown dwarf will upset our magnetosphere (more than is happening already) least we are entertained as we wait for collapse.

TahoeBilly2012's picture

Gold/silver will dip here in a wave ii pullback before blasting higher.

Bastiat's picture

They already dipped--great call!  You should be on TV.

divingengineer's picture

I would expect gold to go higher in an inflationary environment. I don't know if you can demonstrate a rising gold price in a deflationary period. 

At least that's what I gather from reading a lot of sources, not just metals dealers. 

TahoeBilly2012's picture

This guy has never once been correct. If you took his trades, you'd be living in a van, down by the...

divingengineer's picture

It IS the Death Cross.

The last time it happened WAS 2008.

I dunno, I might sit this one out.

kenny500c's picture

Even a stopped clock is right twice a day.

Break_the_Bank's picture

So TBilly, do you recommend buying the dips then?

greenskeeper carl's picture

This "just happened" an entire month ago? I'm not doing any 'dip buying' either, but come on.