Into the final hour of trading post-FOMC, our market leading small caps in the Russell have clearly been correcting the past few days. Obviously, the rest of the market has held up without a real price giveback. Nonetheless, upside progress has stalled a bit here. And as I have been noting the more defensive areas of the market (Dow, staples, utilities) have benefited from rotations.
As I write this, the Russell is down more than 1%. How the market deals with a price correction from one of its major leaders the past few months will be telling. The ETF is below, but on the actual Russell prior all-time highs are down at 868, with more potential support in the 870-880 zone. There is room to come in, some, which is why I have been a seller into strength of late (but not a short-er) rather than a buyer, at least for now.
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