Look at Russell 2K and 1-Year MA

The Russell 2000 blasted through its one-year moving average with a big red candle today. Look back over the chart and try to find a similar move where it blasted right through after trading above. I see August 2011, September 2014, August 2015, October 2018 and March 2020. Look at the shape as well: they are all sort of rhino horns with a rally up that fails and blasts through the moving average. In every single case except one (September 2014) it was a significant correct with either immediate relentless selling or a low that would come a month or two later. Further back, there's also a similar break in July 1998 (also May 2002, but that was a bear market). Good news for bulls intermediate-term: the prior two bear markets started with the index slowly working lower such that the one-year moving average became a resistance line instead of a support line.

Update: I went hunting for some support line to knowe when the correction is getting long in the tooth. In every example, the Russell 2000 broke its 500-day moving average. That would take about another 10 percent down and a roughly 20 percent correction for the Russell 2000. I will update with zoomed in charts for each period in a moment. I am including 2008 to show how that market behaved around the 500-day MA. I didn't pick the 500-day to be precise, it was a typo. But it's good enough for right now.