S&P 500 Tallies Its First 'Death Cross' in 3 Years. Here's What Happens Next
Hanya Investment: It is expected that the S&P 500 Index valuation will decrease by at least 10%, and the Asia market has defensive characteristics.
Recently, Hanya Investment released its "CIO Viewpoint - Weekly Briefing."
Looking back at the long history: What happens after the S&P 500 Index moving average forms a 'death cross'?
① Since the beginning of this year, the sharp decline in the USA stock market caused by Trump’s tariffs has brought a new concern to Wall Street traders; ② specifically, the "death cross" pattern formed when the 50-day moving average drops below the 200-day moving average.
Zero-day Options Are Fueling the Unprecedented Volatility on Wall Street Amid Tariff Chaos
Sell off US stocks to Buy Canadian stocks, Canadians are "taking over for the country."
Under the threat of tariffs from Trump, Canadian investors reduced their Shareholding in USA Stocks and shifted to buying domestic Stocks. From April 7 to 11, the net Inflow of funds into ETFs mainly holding Canadian Stocks reached 2.5 billion Canadian dollars (approximately 1.8 billion US dollars), setting the highest level in four years.
The U.S. stock market has seen a "death cross"! But this time, the market might welcome a V-shaped reversal?
As the USA stock market faces a sell-off due to tariff issues, the emergence of the "death cross" technical pattern again raises concerns in the market. However, Historical Data indicates that this alarming technical signal does not necessarily mean that the stock market will face a more significant decline.
