Is the Russell 2000 index on the verge of a bear market signal?

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The Russell 2000 index is on the brink of closing below its 200-day average

Stock market bulls need not be concerned that the Russell 2000 index RUT is on the brink of dropping below its 200-day moving average.

This sanguine assessment may surprise you, since for decades technicians have considered breaking below the 200-day moving average to be a major bear market signal. In fact, though, the moving average never enjoyed much historical support, and what little support it did have disappeared completely starting about 30 years ago.

 

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