Scary chart pattern signals more stock market seller

"It simply means that you are lower for longer, which means there is no real bounce, which is a sign of real sales." said Scott Redler, a partner with T3Live.com. "Sometimes you break a moving average and you get some kind of fast, fast recovery … but when you stay down, then it's suddenly a real sale. That's why people do not like the death crossing. It almost confirms what can be a change in trend to disadvantages. "

The S & P 500 is already down at more than 10 percent from record height earlier this year, officially a correction. Due to Friday's routine, the reference is now negative in 2018.

The Death Cross pattern formed on Russell 2000 on November 1[ads1]3th, which is 4.4 percent since then. The Nasdaq Composite Index had a death cross form on November 27, and it has lost 1.6 percent since then.