If you needed another reminder that it’s only tech — and primarily seven stocks — that have buoyed U.S. stock markets, then here it is.
The Russell 2000 just cleared the June 2022 low and is trading at the lowest levels since November 2020. Going back further, the index is at the same level as it was in November 2018 – five years of silver dead.
The chart here doesn’t look pretty with minimal support below. If this distribution holds, it ends an 18-month range and portends poor results for value stocks and the broader market.
It may take a change from the Fed, or at least a change from the bond market, to breathe some life back into this chart.