Shares of Netflix Inc. dropped 2.0% in midday trading Thursday, as a “death cross” pattern appeared in the streaming services company’s stock chart, the first appearance of the bearish pattern in nearly two years. The stock’s 50-day moving average, which many view as a guide to the shorter-term trend, slipped to $513.96 from $514.89 on Wednesday, to cross below the 200-day moving average, seen as a dividing line between longer-term uptrends and downtrends, which inched up to $514.50 from $514.47. Some chart watchers believe a “death cross” marks the spot where a shorter-term pullback transitions to a longer-term downtrend. The stock was trading 16.5% below its Jan. 20 record close of $586.34. Over the same time, the S&P 500 has gained 9.0%. Netflix’s last “death cross” appeared on Aug. 28, 2019, after the stock had dropped 24.2% from a near one-year high about four months earlier; the stock shed another 12.7% before bottoming about a month later. The “death cross” before that appeared on Nov. 19, 2018, after tumbling 35.4% from a then-record close reached about four months earlier; the stock fell another 13.6% before bottoming out about a month later.
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