Small Caps Ultimate Bear ScenarioIn case you're wondering what that red line is.... it's my bear scenario line.
The last time Fed raised rates, small caps tanked. See highlighted area. Rates are higher now then they were back then. Plus RTY broke the blue line, and MFI is high enough on the daily that there is a lot of room down. There's no reason why stocks like PTON or BYND can't go to $1. Is PTON really worth $1.7B at this point?
Not saying this happens, but either way, the open weekend gap needs to fill on RTY so I'm bearish until it does.