Year to date through Aug. 25, the small-cap ETF was down 13.3% while the S&P 500 was off 6.6%, according to investment researcher Morningstar. Small-caps tend to lead the way when investors are bullish on the U.S. economy.
“On a relative basis the [small-cap] fund has underperformed the S&P 500 since mid-July. That underperformance continues and is expected to do so until a short-term bottom is achieved,” Coe wrote. “Where could that occur? Based on the depth of the triangle, a move down to around $60 [a share]is implied, the area of last summer’s lows.”
iShares Russell 2000
