This has been happening for some time. The smaller companies are having more losses than the bigger ones. Easily seen comparing Dow Jones vs. S&P 500. The DJ is less weak.
makes sense. these companies have the lowest quality debt and are hurt the most by the rising junk credit spread environment. It would take 200bp of fed rate drops to bring their debt situation back to where it was 4 months ago.
classic hammer formation could be occuring on the daily chart. right now it looks very promising. A hammer at the end of a downtrend is a reliable turnaround indicator