"The Russell 2000 (NYSE:IWM) shed 47.36, or 8.67%, to 499.20, which marked the lowest daily close since Sept. 30, 2003. For the year, the Russell is now down 34.8%, while the Dow is off 35.3% and the S&P 500 is down 37.4%. The Russell has now closed lower seven consecutive sessions, and 9 of 10. In those 10 days, small caps have collapsed 29.2% in one of the most relentless and powerful bearish displays in market history.
Small-cap stocks continue to under perform the large-cap products through the teeth of this collapse. Just three weeks ago, the Russell 2000 was only down 1.6% for the year, while the Dow was down 14.1%, so the percentage loss spread between the two favored the Russell by 12.5%. Now, the difference is less than 1%. Clearly, the market has made a powerful statement that small caps are seen as more risky during a runaway bear market collapse. Small caps led the way up on the bull market move and they have been leading the way down the last 14 days of trading."