If Ghostbusters ever taught us anything important, it was that something bad would happen when you cross streams, but guess what? $QQQ didn't listen and the 50-day moving average crossed the 200-day moving average from below, creating a so-called "death cross".
This is a technical chart pattern that indicates the transition from a bull market to a bear market and basically confirms that we are entering a bear market no matter how much Donald Trump tries to boost it.
The latest death cross in the Nasdaq $CSNDX (-0,23 %)
happened in March 2022 and sent prices plummeting 25% over the next 7 months, stayed flat for about 5 months and then a "Golden Cross" which is basically the opposite and occurs when the 50 day moving average crosses the 200 day moving average from above, happened around March 2023 and we all know the crazy rally that followed. 📈
Although none of the crosses are completely reliable as a sole indicator for predicting market trends or making investment decisions, they are useful tools for identifying potential trend changes.
