Death Cross Nears

The Dow is on the verge of an uber-bearish “Death Cross”

Highlights

• The Dow is on the verge of an uber-bearish “Death Cross” with the 50-day trend line just 0.5% away from the 200-day line 

• Given the perfection that has been priced in, companies missing their EPS guidance have seen a sharper-than-usual decline in prices 

• German GDP fell in Q3, putting more pressure on the ECB’s tight monetary policy stance 

• We reflect on the situation before the 1987 crash, and the eerie similarities with today’s economy