Home > Boards > Free Zone > Big Board Trading - Technical > $Stock*Shop*Charts*News*Option$

Small Caps (Russell 2000) Enter Correction Territory

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
Member Level 
Followed By 585
Posts 82,688
Boards Moderated 45
Alias Born 03/10/04
160x600 placeholder
Celcuity Shares Rise 6% After Fast-Track Designation for Gedatolisib
By Chris Wack
Starbucks on Track for Lowest Close in Nearly a Year -- Data Talk
Blink Charging Shares Up 9% on Deploying EV Chargers to GM Dealerships
Morgan Stanley Down Over 5%, on Pace for Largest Percent Decrease Since June 2020 -- Data Talk
Charles Schwab Down Over 5%, on Pace for Largest Percent Decrease Since June 2020 -- Data Talk
U.S. Soybean Inspections Climb
Goldman Sachs Down Nearly 8%, on Pace for Largest Percent Decrease Since June 2020 -- Data Talk
Unilever ADRs Drop After Approach for Glaxo's Consumer-Health Business
Activision Blizzard Up Over 28%, on Pace for Largest Percent Increase Since July 1994 -- Data Talk
Molecular Partners Shares Drop 14% After Novartis Deal
U.S. Home-Builder Sentiment Decreased Slightly in January -- NAHB
Belgium Sells EUR5 Billion in New 10-Year Government Bond -- Update
Blink Charging Says Deploying EV Chargers to GM Dealerships
General Electric Names New CEO of GE Digital Ahead of Spin-Off
Equinor Awarded 26 New Production Licenses on Norwegian Continental Shelf
FTSE Down, Government Loans to Energy Suppliers Seen as Likely
NeuroMetrix Shares Jump Premarket on Key FDA Designation for Quell
Charles Schwab Posts Higher 4Q Profit, Revenue
Ericsson Sues Apple Over Patent Infringement
Top Company News of the Day
Dyne Shares Fall After Clinical Hold for DYNE-251 in Duchenne Muscular Dystrophy
As Federal Reserve Looks Toward Lifting Interest Rates, China's Central Bank Goes in Other Direction -- WSJ
New York Manufacturing Activity Stalled in January -- NY Fed
Activision Stock Jumps in Premarket on Reported Sale to Microsoft
Antares Gets FDA Fast-Track Designation for ATRS-1902 for Adrenal Crisis Rescue
Surgalign Shares Surge Premarket on FDA OK of HOLO Portal for Spine
Aecon Group Secures $126 Million Contract in Washington State
Bluebird Bio: FDA Extends Reviews of Beti-Cel, Eli-Cel
UK Watchdog Invites Comments on S&P Global, IHS Markit Merger
DiscoverGold Member Level  Monday, 07/19/21 01:56:23 PM
Re: None
Post # of 613509 
Small Caps (Russell 2000) Enter Correction Territory
By: Bespoke Investment Group | July 19, 2021

While the S&P 500 may still be within a couple of a percent of its record high from a week ago today, the magnitude of the decline in small caps has been much larger. While it has seen a bit of a bounce intraday, at the open today, the Russell 2000 was down over 10% from its record closing high in mid-March. While the Russell 2000 is one of the worst-performing US indices in recent months, it remains within the range it has been trading in all year.

From a technical perspective, we consider a correction to be any decline of 10% (on a closing basis) from a closing high without a rally of 10% in between. While the Russell 2000 was down 10% earlier today, if the current levels hold, it won't quite reach the correction threshold on a closing basis. In the chart below, we show every correction for the Russell 2000 going back to 1980 and its magnitude in percentage terms. During this time, the Russell 2000's average decline during a correction has been 18.2% (median: 15.4%), so with the current decline currently not even at 10%, there's a decent amount of room between here and average levels.

While we may not be there in terms of the size of the decline, in terms of duration, the current period is already well above average. The Russell's closing high was all the way back on March 15th, so even if the decline ended today, it would be 126 calendar days, or more than 50 days longer than the average of 73 days and double the median of 63 days.

In the chart below, we show Russell 2000 corrections in terms of their duration in calendar days. What's really interesting to note about the current period is that at 126 days, it already would rank as the 7th longest correction in the Russell's history. When it comes to corrections, we always highlight that they can occur in terms of both time and/or price. For the current period, it has certainly been a combination of the two, but to this point, it has been more centered on time than on price.

Read Full Story »»»


Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences