Something weird happens into the market close.
Last week, we highlighted a chart from JC O’Hara of FBN Securities, who noted that during the final 30 minutes of trading this year, the S&P 500 was down about 2%.
On Tuesday, O’Hara updated this chart in a note to clients and found that the Russell 2000 — the benchmark index for mid- and small-cap companies in the stock market — is actually up about 2% this year during the same period.
In his note, O’Hara writes that he views this action, “favourably for smaller caps and the overall health of the market as hedge funds are more closely benchmarked to the Russell and look to be buying stock.”
And so while it looks like we have net sellers for the biggest US stocks into the market close, some of the smaller stocks find a bid late in the day.
Make of it what you will.