The Russell 2000 index has experienced a notable decline, trading below its 200-day moving average and erasing all gains since September 2024. Currently, only 44% of its members are trading above this moving average, marking the lowest level since April 2024. Meanwhile, the Nasdaq has also turned negative for the year, with a year-to-date decline of 2%. This downturn reflects broader market challenges, as small-cap stocks face critical resistance levels, having broken below the October and January lows. The recent trading activity indicates a bearish trend, with futures giving up early gains and both the Nasdaq and Russell 2000 indices now reflecting negative performance year-to-date.