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 called a "cross" because the lines literally cross on a price chart. You'll hear traders mention it because many see it as a red flag—a sign that short-term momentum is weakening and the longer-term trend might be turning negative. For example, if TechCorp's 50-day average falls below its 200-day average, some investors interpret that as a potential warning to be cautious. That said, it's just one signal among many, not a guarantee that a stock will drop.