The S&P 500 index has experienced a "death cross," marking the first time in three years.

Gate.io News bot message, the S&P 500 index in the US stock market showed a rise on Monday, but a “death cross” technical signal appeared, where the 50-day MA crossed below the 200-day MA, marking the first occurrence of this phenomenon since March 2022. Technical analysts generally view this as a signal of an intensified downtrend.

Historical data shows that although indices typically continue to fall after a death cross, this downward trend lasts for a shorter duration. Statistics indicate that the average rise of the S&P 500 index after experiencing a death cross is 2.5%, 4.2%, and 5.8% over 3 months, 6 months, and 12 months, respectively.

Paul Ciana, the Chief Technical Strategist at Bank of America Securities, stated that the impact of the death cross on future market trends is uncertain. He pointed out that it is crucial to observe whether the 200-day MA declines in the next five trading days. If a decline is confirmed, it could indicate that the stock market will experience a larger fall, and the index may retest last week’s low of 2025.