Traders worry big divergence in stock market is warning –

The small cap Russell 2000 was slightly higher, after finishing down 2 points at 1,105 Wednesday, below its 200-day moving average for a second day. Whether the Russell 2000 is a red flag for the broader market or not, it could continue to feel the heat as investors trim positions in momentum and small cap names. Stocks […]

Stocks could be challenged by momentum meltdown as earnings …

But the selloff in the frothiest names in the stock market that caused a 2.6 percent decline in the Nasdaq on Friday alone is what investors will be watching. That was the worst day for the Nasdaq since November, 2011. “It’s a little bit of a warning, but I’m taking it as a late-cycle signal, which would […]