The perfect correlation never exists but if you exclude "Big Tech" and profiteurs of C19 from the majors you can see SPY and co going sideways to down. Good exercise to gain knowledge.
This is not growth stocks are weak. We are talking about growth stock bubbles. Look at TSLA and any of Cathie Wood stocks. So you think they should continue to maintain a P/E of 50 or 100? For the Russell stocks, when market is done, Russell is done. When market rebounds, Russell does not participate. We have the market disconnect. We sure remember when money was shifting away from big tech to Russell early 2021? This likely going to happen again since we are in endemic now.
I do not recall when. But Russell had one heck of run over QQQ in Q1-2021. That was after the Q4-2020 run-up. I was buying TNA at $30 range. Then exited in Q1-2021. I think this is going to happen again. I'll be a buyer of TNA at $58.
I'd like to hear the causes for the recent Russell drops. High interest rate? More covid cases? High valuation? Russell is in the same dirty bath water with QQQ. I'll be happy to put on a long Russell/short QQQ position. For entire 2022. I bet my own money.