Another positive week for the S&P 500 as it continues to push to new highs. I cannot say the same for the Russell 2000 as weakness begins to set in on small caps. Friday was a hard day on the RUT dropping over 1% and closing firmly below the 50 and 200 day moving averages.
The Russell’s continued lack of involvement in this market run up has investors wondering if it is leading or lagging the rest of the markets. The VIX continues to go lower, now trading in the lower 12s, so it leads me to believe that the Russell 2000 is lagging the rest of the market. After the Fed spoke about interest rates and Scotland voted to stay in the UK the volatility came rushing out of the market.
Let’s see if this week the bears shows up.