The Russell 2000 index of small-cap shares turned lower for the year on Friday, extending a recent spate of weakness that took the closely watched index below its 200-day moving average on Thursday. The index
fell 0.7% on Friday, bringing its year-to-date decline to 0.5%. Most of the index’s weakness has come recently; it is down 5.3% thus far in August. At current levels, it is down more than 7% from record levels hit in July. Thus far this week, the index is down 1.8%, a far larger decline than the S&P 500
which is off 0.7%. The benchmark index remains 8.3% higher on the year, and it is within three percentage points of its record high. On Thursday, the Russell fell below its 200-day moving average for the first time in nearly 14 months, a bearish sign for longer-term momentum.