Dow Jones 'Death Cross' Sparks Recession Fears Despite Recent Stock Gains
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A 'death cross' appeared on the Dow Jones Industrial Average, sparking fears of a market downturn.
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The pattern occurs when the 50-day moving average drops below the 200-day average, signaling weak momentum.
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Death crosses have preceded major crashes like 1929, 1938, 1974, and 2008.
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Still, stocks posted strong gains after cooling inflation data, with the Dow up 4.44% in 6 months.
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Some analysts view the pattern as a bull-to-bear transition warning, while others see a chance to buy low before a rebound.