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It got sent while I was typing... haha all apologies.
Jan 29 14:23 pm
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All Comments by David Schrader »Seeking Alpha in 2008 With ProShares' UltraShort S&P500 ETF [View article]
S&P (-7.65%) these figures according to money.cnn.com 2:15pm, 01/29
That would make you right so far but the Russell has come down from a high of 856 to 702 (-21.4% from its high). The S&P, over the same period, has gone from a high of 1576 to 1356 (-14% from its high). Therefore the R2000 has already been punished and as you stated it's been priced in.
However the impact on a global scale is yet unknown which means Mr Market has been unable to fully price in the negative impact of a US slowdown on internationally-linked companies such as those you mention in the S&P. That's why the R2000 will rebound stronger and more rapidly than the S&P - while the players are still figuring out the S&P impact they'll already know the R2000 impact.