Small Caps Are Puking

Who could have seen this coming?

There is no obvious news-driven catalyst for the un-exuberance (some have suggested India's lockdowns but that has been on the come for a week), but since the US cash open, small-cap stocks have been under pressure and the freefall is accelerating...

Russell 2000 broke below its 50DMA (red line) and doesn't have much support down to its 100DMA (blue line)...

Notably "most shorted" stocks have broken out to the downside from their recent coiling pattern...

Small Caps have erased all their YTD gains relative to Mega-Cap Dow Industrials...

Are investors dumping stocks to buy DOGE?

At the same time, bonds are bid...

Gold and the dollar are also marginally higher.

Dip-buyers piled into VIX...

It would appear the storm, after the calm, is here.