Death Crosses Spread To All Corners Of The Market

• Death Crosses Spread To All Corners Of The Market
  by TOMI KILGORE at Marketwatch, via http://davidstockmanscontracorner.com/
  “Death cross” patterns continue to spread through the stock market like an epidemic, even infecting market segments believed to be more insulated from overseas turmoil.
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  The Russell 2000 index RUT, -2.02%  of small-capitalization stocks became the latest victim among the major market indexes. The index’s 50-day moving average fell to 1,222.95 in midday trade Tuesday, crossing below the 200-day moving average (MA), which slipped to 1,224.11, according to FactSet.
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  Small-cap stocks can’t hide from the ‘death cross’ virus
  Many chart watchers believe a death cross, when the 50-day MA crosses below the 200-day MA, indicates that a shorter-term decline has developed into a longer-term downtrend.
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  The Russell 2000’s last death cross appeared on Sept. 22, 2014. The index fell another 7.1% in the three weeks after that before bottoming at a one-year low. That follows the death cross that appeared in the S&P MidCap 400 Index MID, -2.20% on Monday.
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