If you wonder where the risk has been in the US markets in 2014 then you haven’t been paying attention to the CBOE Russell 2000 Volatility Index. The Russell 2000 (RUT) has not been able to get out of its own way this year and has lagged the performance of larger cap oriented market indexes such as the S&P 500. Last week the RUT played some major league catch up gaining just under 1.5% while the S&P 500 was up slightly. The 8% plus drop in RVX was the result of this strong week for small cap stocks.
The tech sector is represented by the performance of the Nasdaq-100 which was up slightly on the week. VXN responded by finishing the week slightly lower.
Both curves moved from backwardation into contango this past week, although you have to look very close at the VXN curve to get the picture. The parallel shift in the RVX curve makes me wonder if small caps stocks are on track to continue to play some catch up with large caps.