RUT, the Russell 2000 small caps, peaked at 1588-1600 in late July so a -10% pullback, which is a correction, would be 1429-1440. RUT came down to 1460-ish a whisker away from correction territory but now prints 1469. The small caps are keeping their heads above water while teasing correction territory. RUT fell into a correction in May but then recovered. RUT at 1469 is a -8.2% drop off the July top. Note that RUT may take out the June low which would obviously forecast trouble ahead. In late July, the business television pundits and Wall Street money managers told Ma and Pa Kettle to buy small caps, trannies, banks and other stocks with both hands. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 5:51 PM EST: The Russell 2000 dips 6 points today, -0.4%, to 1461 with a LOD at 1456 taking out the early June low. Trannies have also taken out their early June low intraday. Small caps are on shaky ground. The RUT keeps teasing that correction level.
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