The S&P 500 triggered a bearish technical signal Monday, forming its first "death cross" in three years. The index’s 50-day moving average fell below its 200-day moving average, according to a Barchart post on X. This pattern is often seen as a shift from bullish to bearish momentum. However, analysts caution it may be a lagging indicator. Similar patterns were recently flagged in the Nasdaq 100 and Russell 2000. The S&P 500 has seen 24 such events over 50 years, and only 46% led to further losses, according to Reuters. Analysts at Bank of America and Piper Sandler noted that the current setup could lead to short-term declines or a possible rally, depending on whether the 200-day average continues to fall.
