The way I see it, either history repeats and the S&P 500 and Dow (DIA) follow the lead of small caps and correct -- thus validating this persistently bearish bent.

Or, maybe market participants get caught leaning the wrong way -- fueling a monster summer rally taking the S&P 500 north of 2000, causing casual investors around the country to reach for their mute buttons anytime the Rick Santellis of the world appear on TV.

Neither scenario is a sure thing, but it's best to begin preparations for both.

Check out more on the amazing stat that the S&P 500 falls greater than 10% each and every time the Russell 2000 has fallen by 10% since 2000 (35 times!). Please see this excellent blog post by Michael Batnick (@michaelbatnick).

Follow me on StockTwits: @chicagosean

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At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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