Can S&P 500 shrug off 'deathcross' in coming weeks?

A 'deathcross' occurs when an index's 50-day moving average falls below its 200-day trend line. Traders fear this kind of formation could signal a short-term drop is about to become a wider slump. For example, the Dow Jones Industrial Average formed a deathcross on 11 August and fell 11% over the next two weeks. The S&P 500 index has only recorded ten other 'deathcrosses', according to US wealth manager Bespoke Investment Group. "[The move] is extremely negative, and it suggests that investors should be prepared for more volatility in the near term," wrote Bespoke in a note to c...