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Curiouser and Curiouser

|Includes: IWM, SPDR S&P 500 Trust ETF (SPY), VXX
Stocks continue to rally seemingly every day without a hint of a correction on the horizon. Back in December I curiously noted that the volatility index was reaching an important mark on the downsidesignaling a high degree of investor complacency.


Volatility continues to wallow around these lows (even going sub-15 today).



Curiously, as the S&P 500 keeps making new relative highs...



...the Russell 2000 Index (small cap companies) has dramatically lagged behind for over a month.


The last time the ratio between the two indexes turned down like it did in December it signaled the onset of a correction. The S&P 500 lost about 20% from May to August last year. This time, however, despite the lowly VIX and lagging small caps the "Newtonian rally" continues.


Is this just a bull market scaling the "wall of worry" or are stocks running on empty?

Disclosure: I am long TWM.