Russell 2000 now in a correction


Coming in the same week when the Dow and S&P 500 hit new record highs, the Russell 2000 (IWM -1.6%) today tumbled into correction territory, now off 10.2% since its record high hit on March 4.

The Dow (DIA -1%) and S&P (SPY -1.2%) haven't suffered a correction since 2011 H2, though the Nasdaq fell into correction in November 2012 (the tech index fell nearly 10% from March through mid-April this year, but bounced).

The question at hand is whether the large-cap averages will follow the Russell. or continue to go their own way to new records.

Small-cap ETFs: IWM, TZA, TNA, UWM, VB, IJR, SLY, RWJ, URTY, SCHA, TWM, RWM, SRTY, DWAS, SAA, VTWO, VIOO, SDD, SBB, JKJ, RSCO, FYX, XSLV, EWRS, TWOK, SMLV, PXSC

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Comments (2)
  • bbro
    , contributor
    Comments (11234) | Send Message
     
    In 1998 the Russell 2000 dropped 37% while the S&P 500 dropped 19%...the S&P 500 made a pretty quick recovery,,,the Russell 2000 did not....
    15 May 2014, 12:44 PM Reply Like
  • ramsestg1
    , contributor
    Comments (11) | Send Message
     
    Since the mid-1990's, all R2K corrections have averaged ~21%. Credit Suisse wouldn't be surprised to see it approach 1,000 or around -17%. With that in mind, the 12 months following mid-term elections have seen stock gains 100% of the time since 1942. Goldman adds, the S&P has gained an avg. 18% in the 12 mos. following each of the 15 mid-terms since 1950.
    15 May 2014, 05:59 PM Reply Like
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