Two days ago, when the markets were actually allowed to trade lower, the RUT fell particularly hard. As you can see above, not only did it fall 2.3% on big volume (not shown on the chart) but it also lost critical support at its 50 dma. The drop also confirmed, rather dramatically, the breakdown from the wedge pattern. Momentum indicators look awful with the MACD plunging and RSI testing the bottom channel.
Let's now back out to a longer-term chart and see what's going on.
So the RUT has been hugging the underside of that long-term trend line for almost six months...that is until now. Yesterday's drubbing has put the RUT farther below the trend line than it's been since the October 15 lows - not a good sign for the bulls. The long-term MACD failed to make new highs alongside the RUT which is a major red flag. Now it's rolling over again suggesting further weakness ahead. Will small caps be the canary in the coal mine like they always have?