For the first time in over a year, the Russell 2000 closed below its 200-day moving average. This may seem like a long-term sell signal, but it really depends on the bigger trend. Notice how one would have been better off buying on breaks below the 200-day in 2004, 2005 and 2006. Of course, selling on the breaks in late 2007 and 2008 would have saved an investor quite a bit of money and worked out well. The index has been trending higher since 2009 and it would have paid to buy the breaks in 2010, 2011 and 2012. There were no breaks in 2013.
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