What Is a Death Cross?
The "death cross" is a market chart pattern reflecting recent price weakness. It refers to the drop of a short-term moving average—meaning the average of recent closing prices for a stock, stock index, commodity or cryptocurrency over a set period of time—below a longer-term moving average. The most closely watched stock-market moving averages are the 50-day and the 200-day.
Despite its ominous name, the death cross is not a market milestone worth dreading. Market history suggests it tends to precede a near-term rebound with above-average returns. (investopedia)
Historically what happened when VIX has a death cross:
Death Cross Date. Spike date Range
8/20 2020 9/3 2020 21 to 41
11/17 2019 12/2 2019-2/25/2020 11-85
3/18 2019 3/22 2019 11-24
7/6 2018 10/10 2018 11-35
4/8 2016 6/24 2016 12-26
4/14 2015 5/6 and 6/30 2015 11-27
5/6 2014 8/1 2014 10-17
11/22 2014 2/3 2014 12-6
So statistically, When death cross is observed, VIX tend to bottom at 11's. After the bottom we tend to see a meaningful spike. Get ready for a great bull run for days/weeks.
The "death cross" is a market chart pattern reflecting recent price weakness. It refers to the drop of a short-term moving average—meaning the average of recent closing prices for a stock, stock index, commodity or cryptocurrency over a set period of time—below a longer-term moving average. The most closely watched stock-market moving averages are the 50-day and the 200-day.
Despite its ominous name, the death cross is not a market milestone worth dreading. Market history suggests it tends to precede a near-term rebound with above-average returns. (investopedia)
Historically what happened when VIX has a death cross:
Death Cross Date. Spike date Range
8/20 2020 9/3 2020 21 to 41
11/17 2019 12/2 2019-2/25/2020 11-85
3/18 2019 3/22 2019 11-24
7/6 2018 10/10 2018 11-35
4/8 2016 6/24 2016 12-26
4/14 2015 5/6 and 6/30 2015 11-27
5/6 2014 8/1 2014 10-17
11/22 2014 2/3 2014 12-6
So statistically, When death cross is observed, VIX tend to bottom at 11's. After the bottom we tend to see a meaningful spike. Get ready for a great bull run for days/weeks.