The Toronto Stock Exchange's miserable Monday is on the verge of adding insult to injury. The deep losses have put a major technical breach at hand.

With the S&P/TSX composite index down more than 180 points in late morning, the Canadian benchmark's 50-day moving average is rapidly descending upon its 200-day moving average. The 50-day average is just 13 points above the 200-day.

Should the 50-day average drop below the 200-day average, the event would be what is known by technical traders as a "death cross." As the name suggests, it ain't good; death crosses are generally considered signals of upcoming bear markets.

With the S&P/TSX also moving below the 200-day average in Monday's trading, there doesn't look to be a lot of near-term technical support to avoid a death cross.

However, some market strategists have argued that the occurrence of a death cross often isn't all that bearish at all. In fact, they say, the death cross can often signal a near-term market bottom, rather than the start of a new downward phase.

Which will it be this time? Place your bets, ladies and gents.