Analyst Claims Stock Market’s "Death Cross" May Lead To ‘Resurrection’

The S&P 500 flashed a "death cross" signal this past week amid a tariff-driven sell-off. But one technical strategist says death cross formations have historically preceded stock gains, Matthew Fox reported for Business Insider.

The S&P 500 and Nasdaq 100 both triggered the "death cross" signal this week, traditionally viewed as a bearish technical indicator.

Adam Turnquist of LPL Financial told BI that he believes a stock market bottom is in. The market has been rattled this year, with the S&P 500 falling 10% year-to-date as investors worry about the economic fallout from President Donald Trump's tariffs.

Those concerns were amplified earlier this week when the S&P 500 and Nasdaq 100 both triggered the "death cross" signal, traditionally viewed as a bearish technical indicator.

But Turnquist, chief technical strategist at LPL Financial, said investors shouldn’t panic.

That’s because historically, returns following a death cross have often been positive. Turnquist analyzed past data and found that since 1950, the 3-, 6-, and 12-month average forward returns for the S&P 500 after a death cross signal were positive.

All three-time frames showed a win rate above 50%, with a 72% success rate 12 months after the signal. Still, Turnquist acknowledged that the death cross can accurately predict losses in certain instances, citing several historical examples.