RUT down 1.67%; s&p down .06% Var 1.61% pts??

The RUT is down 1.67%, the s&p down .06% a difference of 1.61 percentage points. That seems unusual to me. Are there any implications to that variance for the direction of the market?

The RUT is down 1.67%, the s&p down .06% a difference of 1.61 percentage points. That seems unusual to me. Are there any implications to that variance for the direction of the market?

. . . and the Dow was up .54%. What it says to me at first glance is that the larger (more international) companies did better than the smaller ones.

It tells me folks want less, or no risk.

During times of direst, liquidity will move back into the large caps first with any excesses after that into the mid caps, small caps, and finally into the secondaries as confidence builds.

Perfectly normal, and for the Elliottician's out there, looks like we finished wave (iii) of c of ( C ) today.

Fib

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&st=2010-12-03&en=(today)&i=p76253338841&a=241005231&r=4435.png

They sold short the growth, but bought safety... But at least, there is some equity exposure... We need another low with the opposite picture... Similarly banks were down today the most, tech and energy market performed, the utilities and staples outperformed, bear market rally. We need another low where the tech and banks hold up better and energy and utilities kind of under perform. Definitely this cannot be a lasting low, but the idea was to slow down the decline first, imho... BTW, VIX finally started to spike and kind of retreated again, most likely it will be exceeded and at least match 2010 before a lasting low... I am looking for 1150 with all the items listed above, I think such a low can last a few weeks at least.

Edited by arbman, 05 August 2011 - 03:39 PM.

Thanks for the replies - there are some points I didn't think about before. I took a quick look at the weeklies. For the RUT & S&P they are outside their Bollinger bands so a week of sideways movement could happen before the decline continues - it has been fast. On the weeklies again, it is surprising that just this week that High Yield Bonds & Emerging Markets Stocks dropped out of their trading range that started in Oct/Nov Another cloud on the horizon is the 10 year anniversary of 9/11 - news outlets should begin talking about it and mentioning that the terrorists like to attack on or near anniversary dates. That might give investors pause.

Edited by Dex, 05 August 2011 - 04:56 PM.

Why LET terrorists destroy another building in US and look totally incompetent? If there will be a building to destroy, it would be Fed's NY office, it contains a ton of records about the toxic assets...

Another 9/11 will not happen in US...

Large numbers of case files for ongoing investigations by the Securities and Exchange Commission (SEC) and the Equal Employment Opportunity Commission (EEOC) were reportedly destroyed in the collapse. The Los Angeles Times reported that "substantial files were destroyed" for 3000 to 4000 of the SEC's cases. The EEOC reported that documents for 45 active cases were destroyed. 3 Before the attack, SEC investigations of corporate fraud by companies such as Enron and Worldcom were the subject of many news reports -- reports that virtually vanished in the wake of the attack.

For everything else, there is probably an inflationary depression looming as US' GDP is not growing fast enough to offset the growth in the deficits and the money multiplier is not working, the economy is still deleveraging...