The "worry" is that this move is the beginning of a new bearish trend ... and the long-term moving average is seen as the new resistance level.
So far this year, small-cap stocks have underperformed their larger counterparts. Year-to-date, the Russell 2000 is down almost 3% while the S&P 500 has gained over 7%.
Moreover, the small-cap index has been weakening and is off almost 7% from its all-time high set at the start of July, while the large companies in the S&P 500 and the Dow Jones Industrial Average have been hitting new highs.
The main issue is that small caps are under-performing and traders wonder what that says about the strength and breadth of the recent rally.
Nevertheless, the last time the Russell 2000 formed a death cross in July 2012, no significant sell-off followed as the index recovered and continued an uptrend. My guess is that this pattern would get far less media attention if it was named "Phlarg" or a "50/200 Crossover".
These arethe types of "early warning signs" you should watch. However, they are just early warning signs ... until they prove themselves to be more.
A new entry to the Hype Cycle this year is “data science,” projected to reach the plateau in 2 to 5 years. It’s more a discipline for dealing with big data then a specific technology or set of technologies, so it’s interesting to note that big data is still considered by Gartner to be 5 to 10 years away from reaching that stage.
Gartner's Hype Cycle Special Report highlights “the four Nexus of Forces (social, mobile, cloud and information),” which were highly correlated with items that had changed most significantly on the peak portion of the Hype Cycle. Two trends Gartner called out especially as having an impact at earlier stages of the Hype Cycle were digital business and the Internet of Things.
The 2014 Hype Cycle for Emerging Technologies marks the 20th anniversary of the report.
For more, see this video, which talks about the Hype Cycle as a tool for tracking how innovations and their business impact evolve over time and what is new about the 2014 version.
The best part came at the nine-minute mark, when he told the crowd:
"We're going to be hardcore. HARD-core. HARDCORE! We're going to get better everyday. We're going to be tenacious. Something knocks us down and we're going to get back and keep coming and coming and coming and coming. Did you watch these guys? That was hardcore! Hardcore baby! Nothing gets in our way, BOOM! Keep coming. HARD-core. The HARDCORE Clippers, that's us."
Speaking of hardcore ... For the record, Ballmer bought the Clippers for a $2 billion (four times the record sale for an NBA team, according to the LA Times).