Russell 2000 Stays Down for the Day and Year as Majors Gain

NEW YORK (TheStreet) -- The stock indexes finished mixed on Friday as the DJIA was up 28.74 points to close at 16943.81 and the S&P 500 was up 2.89 at 1967.57. The Nasdaq was higher by 19.28 at 4415.49. The Russell 2000, however, closed down on the day by 1.93 and finished at 1159.93.

For the year, the DJIA is up 2.2% while the S&P 500 is up 6.45%. The Nasdaq is up 5.7% YTD. The Russell 2000, however is down .31%.

So, for all the traders out there who are bullish and excited about the stock market in 2014, I caution you to take a step back and understand what is happening under the surface of this stock market.

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"The equity market remains

The Russell 2000 are the small-cap growth stocks. They are usually the leaders in an overall bullish stock market. The fact that those stocks are underperforming and negative for 2014 should be viewed as a negative.

I continue to be of the opinion that this stock market is not what it appears to be. There are too many negative divergences that should have traders and investors take a step back and be careful.

The leading sectors in this stock market continue to be the growth slowing sectors and the inflation accelerating sectors. The Select Sector Utilities ETF (XLU) is up 13% YTD, while the SPDR Gold Trust (GLD) is up 11% YTD. Even though the S&P Goldman Sachs Crude Oil Trust ETN (OIL) has corrected, it is still up 5.4% YTD. The Barclays 7-10 Year Treasury Bond Fund (IEF) is up 4.3% YTD.

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