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.
As of this month, the world’s population is now 7.2 billion.
According to U.N. data, half of the people around the globe (3.6 billion) live in just a half-dozen countries. China has the world’s largest population (1.4 billion), followed by India (1.3 billion). The next most-populous nations – the United States, Indonesia, Brazil and Pakistan – combined have less than 1 billion people.
The demographic future for the U.S. and the world looks very different than the recent past.
For example, the U.N. projects that during this century, the number of people living to at least age 100 will increase more than 100-fold, from 181,000 in the year 2000 to over 20 million in the year 2100.
There is always something working. It still surprises me how often it changes.
For example, take a look at Coffee's rise.
The chart below shows the top-and-bottom performing markets so far this year. The data is color coded based on sector. The first column shows year-to-date performance, followed by six columns of the most recent yearly market performances.
This indicator has been trending slightly downward for about a month now, but it hasn't fallen below the 75% mark for quite some time. Generally, whenever this breadth reading gets above the 80% level, the market is due for a breather.
In contrast, less than 50% of NASDAQ stocks are above their 200-day moving averages.
According to Martin Pring, that means that relatively few stocks are participating in the rally, and an even lower number are registering new highs. Moreover, there are currently slightly more stocks at new 52-week lows than highs, even though the NASDAQ is very close to its bull market high
Obviously, business effects the economy of states. But, as the Washington Post notes, businesses are not created equally - bigger businesses naturally have outsized influence, generating more revenue, paying more taxes and employing more people.
The following chart shows the largest company, by revenue, in each state. Some of these seem like easy guesses. For example: GM in Michigan, ExxonMobil in Texas, Berkshire Hathaway in Nebraska, Nike in Oregon, Walmart in Arkansas, and FedEx in Tennesse.