However, Lang says in the case of the Russell 2000, an index of small cap stocks, conventional wisdom does not apply. In fact, conventional wisdom has it backwards.
Using information compiled by Ryan Detrick from SeeItMarket.com, Lang says that since December of 1988, there have been 19 death crosses in the Russell 2000.
And, yes, they were bearish in the very near-term. Initially, the Russell 2000 tumbled, selling off an average of 1.92 percent in the first five days after the death cross.
However, on average the losses quickly began to reverse.
According to the research, ten days later, the Russell 2000 was only down an average of 0.7 percent. Three months later, the Russell 2000 had gained an average gain of 1.57 percent.
Believe it or not, from there, the historical patterns actually turn very bullish.
Six months after a death cross, the Russell 2000 had rallied, on average, 7.54 percent, and a year later it posted an average gain of nearly 12 percent.
And if you really want to get wonky, the median figures for the index's last 19 death crosses are even more positive, with the median example giving you a 4 percent gain after three months, an 11.8 percent gain after six months, and a 17.4 percent gain after 12 months.