Beta Bust

You gotta fast car
Is it fast enough that we can fly away?
We gotta make a decision
Leave tonight or live and die this way
--Tracy Chapman

In the daisy chain of financial markets, the weakest links are the first to go. In 2000 it was the dot coms. In 2007 it was sub prime mortgages.

This time around the harbinger may be small cap stocks. After being the fast cars on the way up for years, they are now being sold the hardest.

The Russell 2000 Index is more than 10% off its highs and has broken numerous technical support levels.

Beta going bust appears to be leading to the downside.

position in SPX