Five Days of Russell 2000 Losses Is Seen as Just a Start

Shares of smaller U.S. companies are vulnerable to losses even after a week-long retreat for the Russell 2000 Index, according to Jonathan Krinsky, chief market technician at Bay Crest Partners LLC. Krinsky cited the Russell 2000’s value relative to its 200-day moving average, a barometer of price trends, in a report Friday. Last month, the index exceeded the moving average by as much as 38.5%, according to data compiled by Bloomberg. The gap shattered a record of 30.3% from March 2000. Friday’s spread fell below 30% after the Russell 2000 posted losses for five straight days, the longest losing streak in 11 months.