If risk was a commodity, it would be in abundant supply. Whether it's high oil prices, tepid earnings growth, the European debt and banking crisis or global economic concerns, there are more than enough excuses around for the market to sell-off if it wanted or needed one. And yet, since fear appears to still be scarce - at least for the large caps - the S&P 500 has (so far) been able to hold its ground, without so much as a 1% dip in the past 44 trading days.
But for all the resilience and punch that the Dow and S&P appear to be packing, there are at least 3 indicators that are already looking comparatively weak.
Atop the early exodus list is the Russell 2000, or the small cap benchmark, which has shed over 3% in the past week while the big caps have held steady. The decline prompts Macke to say that it "suggests people are chasing the big headlines" at the expense of research and fundamentals. Normally, when small caps lead the decliners its a sign of risk reduction, but this time it appears to be more like risk rotati0n.Read More »from As S&P 500 Tremors, These 3 Benchmarks Are Already Down