The death cross is a chart pattern indicating the potential for a major sell-off. It appears on a chart when a stock's short-term moving average crosses below its long-term moving average, according to Investopedia.
All FAANG stocks are now in Death Crosses, Apple being the last to get there on Friday. Apple was once a trillion-dollar company but is now valued at $715 billion.
In markets (as of Dec. 21):
(MarketWatch)
Dow: 22,445.37
The Dow’s 50-day moving average stands at 24,914.18, compared against its 200-day average at 25,046.03.
(MarketWatch)
S&P 500: 2,416.62
Above is the S&P 500 with the 50-day moving average at 2,692.42, below the 200-day moving average of 2,753.66.
Volatility
The statistical measure that is often associated with big swings in the market is the S&P 500’s volatility or the Chicago Board Options Exchange SPX Volatility Index. This measure has been climbing and was at one of its highest as of Friday at 30.11% compared to its 15.3% average from 1928 to 2004.
(Y-charts)
Put-call ratio
A higher figure on this ratio means that investors are buying insurance against further downside. The ratio was at its highest as of Friday at least in the past five years at 1.13.
(GuruFocus)
Yield curve
Experts are also looking closely at a possible yield-curve inversion on the 10-year and two-year spread as an inversion has predicted the past seven recessions.
AAII investor sentiment survey
This is what the name implies.
(Quandl)
Sentiment of bullish investors is at its lowest since September 2016.
(Quandl)
Sentiment of bearish investors is near January 2016 highs.
(Coinmarketcap)
Bitcoin
As a bonus, the value of the online currency that some expected to replace the dollar at some point in the future has collapsed.
(Reuters)
Outlook
Meanwhile, a measure of global growth outlook has dimmed for the first time, per a Reuters poll. Factset poll also forecasts 5.5% revenue and 8.3% earnings growths for 2019 from estimated earnings and revenue growth rates of 20.3% and 8.9% for 2018 -- the highest since 2010.
The probability of recession in the next two years also has jumped to its highest since a Reuters poll in May of this year.
(Factset)
S&P 500 valuation
S&P 500 price-earnings ratio has fallen under the five-year and ten-year** trailing average.
Timing the market
As the Economist recently pointed out, it may only have been Jesse Livermore who could have successfully timed the market. Until he was not able to meet his own expectations.
Disclosure: Long Facebook, Apple and Google.
**per recent Factset data.
