Weakness in Small Caps

In 35 years of history, this is only the third time that the NYSE Composite Index was sitting at a 52-week high one day, and the next day the Russell 2000 had fallen below both its 50-day and 200-day moving averages. The two precedents occurred on 3/12/99 and 11/1/07, which is disturbing as it preceded the last two bear markets. It's tenuous (!) to place a lot of weight on a sample size of two, though this is another warning that the divergences we've been seeing lately have not had positive outcomes the majority of the time.