There is one line of thinking that US stocks haven’t been hit too hard lately. The S&P 500 is down 6% from its record high, which is some pain but not exactly a rout.

It’s a different story in small caps, which initially rallied strongly on the election on hopes for a tax cut and regulation, particularly banks. Now there is some real recession fear creeping in and the yield curve is inverted again.

With that, the Russell 2000 is down 17% from the December high and today the September low broke.

It’s down 2.4% today.

This article was written by Adam Button at www.forexlive.com.