By Tomi Kilgore
Published: Sept 1, 2015 1:37 p.m. ET
“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.
The Russell 2000 index RUT, -2.71% 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.
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.
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, -2.83% on Monday.
https://www.marketwatch.com/story/death-cross-patterns-spread-like-a-bearish-virus-2015-08-28
