The death cross is a technical indicator that occurs when the 50-day moving average moves below the 200-day moving average, suggesting a change in the long-term trend. This bearish signal could lead to a decline in the stock price in the short term, as it indicates that the stock's trend is moving lower. However, seasoned investors use the death cross as a signal to start looking for short positions based on other factors, such as price levels and company fundamentals.