I don’t sugarcoat things. So let’s be clear: while risk is just risk until price action follows through to the downside, it will take quite a change of circumstances to stop small-cap stocks from plummeting from here.
This is about as vulnerable a chart as I’ve seen in a while. It has all the makings of a move down toward the August lows around $210. And if it doesn’t burn all its bear fuel by then, last April’s $170 bottom is in play. That’s a breezy one-third off Friday’s close.
