Its Over, page-12560

RUT Index Charts and Quotes — TradingView

Set to All view in the above Russell 2000 chart.

1. We have seen a very defining downward trajectory that has gained momentum since April (see this in the 1 year chart)
2. Observe that despite the sharp 24.5% fall from its peak in Nov 21 (yes, small cap bull peaked and ended thereafter) , we are still 10% above its pre-COVID crash level
3. It does look like the chart is heading towards its longer term upward trendline support around 1400, which means another 24% decline is quite possible IF the present downdraft picks up more steam.

Risk-reward does not favour small and micro caps at this point of this bear market, because when the large caps fall and along with it the major indices, small/micro-caps will also retrace and retrace harder but if the large caps hold their ground and recover, small/micro-caps may not all receive the same recovery especially those that has not delivered because we will get Flight to Quality , a flattening out of speculative exuberance (speculators already lost a lot of money/ those who have exited may elect to deploy funds into their mortgages or cash that starts to yield better), increasingly more difficulty for small operators to raise cash and more concerns about their survivalibility in the face of increasing cost of debt and capital.