Deep Dive: S&P 500 Death Cross, Stock Market Rotation

The video tutorial discusses the S&P 500 death cross, a technical indicator where the 50-week moving average crosses below the 100-week moving average, historically leading to significant market downturns. It highlights past occurrences in 2001 and 2008, emphasizing the potential for market calamity. The tutorial also explores short-term indicators like the 50-day and 200-day moving averages. Additionally, it analyzes sector rotation within the S&P 500, noting a shift away from bond proxies towards energy and material stocks, influenced by factors like dividend yields and dollar strength.

What is a 'death cross' in the context of the S&P 500?

• When the 100-week moving average crosses above the 50-week moving average

• When the 50-week moving average crosses below the 100-week moving average

• When the 100-week moving average crosses below the 50-week moving average

• When the 50-week moving average crosses above the 100-week moving average

Which moving averages are typically used as short-term indicators in market analysis?

• 50-week and 100-week moving averages

• 50-day and 200-day moving averages

• 100-day and 200-day moving averages

• 50-day and 100-day moving averages

What sectors are investors moving away from according to the market rotation discussed?

• Financials and real estate

• Technology and healthcare

• Consumer staples and utilities

• Energy and materials

How might a strengthening dollar impact commodity prices and related sectors?

• It could increase commodity prices and boost related sectors

• It would stabilize commodity prices

• It would have no impact on commodity prices

• It could decrease commodity prices and pressure related sectors

Which sectors are gaining momentum in the leading quadrant of the S&P 500?

• Consumer staples and utilities

• Energy and materials

• Technology and healthcare

• Financials and real estate