As CEO Keith McCullough wrote in today’s Morning Newsletter, the Russell 2000 small-cap index “is down -9.1% from its all-time-bubble-peak in March…Whereas the SP500 is only -0.8% from her all-time-twitter-muscles-but-but-the-market-isn’t-down-yet peak.”
That said, we asked in today’s poll: Is the big drop in the Russell 2000 predicting pain ahead for the S&P 500?
At the time of this post, 53% agreed they saw PAIN AHEAD; 47% said ALL CLEAR.
Voters who think there is PAIN AHEAD said:
- “$RUT led the way up, it will lead the way down. It does not have the slow growth sectors within it, like Utilities, Telecom, Staples, etc.”
- “As realisation the FED is cornered takes effect the low volume won't be able to support these prices.”
- “Record leverage, Yen, unrealized profits, Macd on the monthly chart looks VERY SCARY!! Completing very defined head and shoulders. Running out of morons to buy. Volume and Breadth is absolutely pathetic. Can’t figure out what the delay is all about except the big boys are trying to gently distribute without bringing the market down. I think the supply of idiots is beginning to run low. Looking for a big move soon. OH, almost forgot, Keynesian economics is a fraud designed to usurp political power from morons, not really gonna "actually" work financially. Oh well I guess all of our kids and grandkids will figure it out since they will have lots of time to do their homework on it without all those pesky jobs to take up all their time.”
- “Quarterly earnings seem to be more about buybacks than beating what were already lower adjusted estimates. YoY consumer spending for things other than food, gas & electricity will show deceleration. This will not bode well for next quarter.”
Conversely, those who believe it is ALL CLEAR said, “Don't fight the FED,” and that “this is just a bump in the road.”
