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 two lines literally cross on a price chart. You'll hear traders mention this because it's seen as a bearish signal—suggesting the stock's short-term momentum is weakening compared to its longer-term trend, which often precedes a price decline. For example, if TechCorp's 50-day average falls below its 200-day average, some investors might interpret that as a warning sign to be cautious. That said, it's just one indicator among many—not a guarantee the stock will drop.