By Ian Wyatt NEW YORK ( TheStreet) -The decoupling of stocks and indices is happening just as I suspected it would. Hardest hit lately has been small-cap stocks. Check out the precipitous drop, and subsequent bounce in the S&P 600 Small Cap Index over the past week. The index almost hit its 50-day moving average before turning back up. This may make you wonder if it's time to jump out of the small cap foxhole and run for high water, i.e. mid and large cap stocks. Especially when you read the headlines that are all over today: Dow Breaks Through 12000 For the First Time Since 2008.