Ever since CBOE launched trading on the CBOE Russell 2000 Volatility Index (RVX – 19.20) I have been focused on the relationship between the S&P 500, Nasdaq-100, and Russell 2000. The Russell 2000 was a champ in 2013 beating the S&P by almost 10%, but had been lagging the S&P 500 in 2014. The key part of that statement is the word ‘had’ as the Russell 2000 was up over 1% while both the S&P 500 and Nasdaq-100 lost ground last week. Despite the good week RVX is still slightly above the average spread relative to VIX over the last year or so. I always believe there is a story behind the numbers and in this case I’m guessing risk perception for the US versus the rest of the world continues in a heightened state for 2014, despite the good week for the Russell 2000.