No US equity index has reacted more strongly since Election Day than the Russell 2000 small-cap index.  As shown in the chart below, the index finally broke out above its highs from earlier in the year following Monday’s positive vaccine news. After that move on Monday, the Russell 2000 was up over 10% in just the last six trading days.

In just about any other year besides 2020, a 10%+ move in the Russell 2000 would be an extraordinary move, but this year the most recent move is actually the sixth one of at least that much.  In fact, coming out of the March lows, the Russell saw three six-day moves of 19.1%, 16.3%, and 14.8%, respectively.  The frequency with which we’ve seen these 10%+ moves in the Russell 2000 over a six-day period has been unlike any other year in the Russell’s history.  Behind 2020, the year with the next highest total of 10%+ moves was 2011 (4) and then 2008 (3), and the most there has been in any twelve-month rolling basis is five spanning late 2008 through the first half of 2009. Click here to for a full access free trial to our research and interactive tools.

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