Russell 2000 falls to the lowest since 2020

If you needed another reminder that it’s been just tech — and mostly seven stocks — that have been carrying US equity markets, then here it is.

The Russell 2000 just broke through the June 2022 low and is trading at the lowest levels since November 2020. If you go back further, the index is at the same level as in November 2018 — five years of dead money.

The chart here isn’t a pretty one with minimal support below. If this breakdown holds, it ends an 18-month range trade and points to some poor outcomes for value stocks and the broader market in general.

It might take a turn from the Fed, or at least a turn in the bond market, to breathe some life back into this chart.