Monday, September 22, 2014

RUT Russell 2000 Small Caps Daily Chart Death Cross Pattern

The 50-day MA crosses down through the 200-day MA today creating a Death Cross pattern. Seasoned technicians do not pay much attention but the patterns make for exciting news headlines. A death cross ushers in a period of bearish weakness that can last for weeks or months. Typically when the cross occurs price will tend to bounce but in the weekly and monthly time frame, the death cross does usually accurately forecast weakness in the short to intermediate terms. Keep an eye on it over the coming days. As long as price stays under 1150-ish, the death cross will continue to hold. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 10:48 AM on Tuesday 9/23/14: The 50-day MA further stabs down through the 200-day MA as the RUT price collapses to 1127 not seen since early August.

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