Kahn, however, did mention that the “death cross” was a reliable indicator prior to the Dot-com bubble in 2000 and the Great Recession in 2008.
Leveraged S&P 500 ETF Traders Thrive on Volatility
While equities investors were rattled by the latest declines, traders in leveraged S&P 500 ETFs thrived on the volatility. Major movers included the Direxion Daily S&P 500 Bull 2X ETF (NYSEArca: SPUU), Direxion Daily S&P500 Bull 3X ETF (NYSEArca: SPXL), Direxion Daily S&P 500 Bear 3X ETF (NYSEArca: SPXS), and the Direxion Daily S&P 500 Bear 1X ETF (NYSEArca: SPDN).
SPUU and SPXL were both marred by the latest declines, losing about 5% and over 8%, respectively. Conversely, SPXS and SPDN gained, 9.20% and 2.52% as of 1:45 p.m. ET.
“While everyone obsesses over the pending death cross in the S&P 500, they seem to have missed the fact that the S&P MidCap 400 Index of mid-capitalization stocks, the Russell 2000 Index of small-cap stocks and the New York Stock Exchange Composite Index all crossed in mid-November,” Kahn wrote. “Both the key bank and semiconductor sectors crossed in October. And the overall market is still standing.”
For more market trends, visit ETF Trends.
