Small-Cap Selloff Leaves Fewer Stocks Shouldering Rally
This article is for subscribers only.
The biggest tumble for smaller companies in seven weeks underscored weakening breadth in the American bull market two weeks after its 5 1/2-year birthday.
Shares tracked by the Russell 2000 Index slid 1.5 percent, the largest retreat since July 31. While the Russell 3000 Index touched an intraday record at the end of last week, fewer than 55 percent of its components traded above their 200-day moving average, a combination that hasn’t happened since the peak of the dot-com bubble, according to MKM Partners LLC. The Chicago Board Options Exchange Volatility Index jumped 13 percent for its biggest rally in seven weeks.