I don’t want to worry you — it’s not something I practice, though I will when I think it is time. It’s not time yet but there is a death cross we have to be aware of. Did I say I didn’t want to worry you?
Technical types tell us this death cross happens when the 50-day moving average of the Russell 2000 index of small and mid-cap companies falls below its 200-day moving average – something which has just occurred.
It means the latest average of index levels of 50 days is lower than levels over 200 days (see chart below). So in simple terms, markets are less pro-stocks when it comes to smaller US companies. It can be a sign that the uptrend could be about to change.