Edwards: 'Ultimate death cross' threatens S&P 500

SocGen permabear Albert Edwards has said the S&P 500 is in danger of breaching a crucial support level, a move that may coincide with US 10-year treasury yields moving below 1%.

Edwards urged investors to beware the "ultimate death cross" on the S&P, a rare event in which a 50-month moving average (currently at 1152) falls below the 200-month average (currently 1145). The death cross often heralds the beginning of a bear market in equities. "The averages came close to crossing in 1978 towards the end of the 1965-1982 secular bear market, but just held. By contrast, Japan suffered a monthly death cross in 1998 and 14 years later we are still in the firm embrace of the bear," Edwards said. The analyst also highlighted the recent interest rate cut in Korea, n...