Death Cross

A Death Cross happens when a stock's 50-day moving average (the average price over the last 50 days) drops below its 200-day moving average (average over 200 days). It's a bearish signal—meaning traders see it as a warning that momentum is shifting downward. You'll hear about Death Crosses in technical analysis, the practice of reading price charts to predict future moves. Many traders watch for this pattern because it often precedes further price declines, though it's not a guarantee. For example, if TechCorp's 50-day average was $85 and its 200-day average was $90, and the 50-day dropped below $90, that would be a Death Cross. Smart investors use it as one clue among many, not as a reason to panic alone.