(CNBC) — The Russell 2000 has been diverging from the broader market over the last several weeks, and now technicians point out it has flashed a bearish signal. For the first time in more than two years, the small-cap index has hit a so-called death cross.
A death cross occurs when a nearer-term 50-day moving average falls below a longer-term, 200-day moving average. Technicians argue that a death cross can be a bearish sign.
While traders have already been quite bearish on the Russell 2000 so far this quarter, no other major U.S. index is near its death cross.
Advertisement - story continues below