When the market goes down, small caps tend to underperform the large caps, i.e., they fall more.

That is true not only for the USA market but for other markets as well. Here is the recent data from India.

In the regular webinars/weekly roundups, I had shown the bearish Headwind reversal signal on India's Nifty50 index. After that declined and subsequently confirmed the bearish Go With Flow trend-following set up and it continued to fall.

Here I attach a series of graphs showing the performance of various market indices, in order of largest cap stock indices to smallest cap stock indices. All snapshots are as of 3rd Sep after market close.

Nifty50 is the most widely used index (similar to S&P500 in the USA). Nifty Small Cap could be considered to be similar to the Russel 2000 small-cap index in the USA.

Index        Below 52-Week High
Nifty 50             10.7% 
Nifty Mid Cap     11.4%
Nifty Small Cap  30.3%

The small caps declined by almost three times compared to the Nifty50 index. If you were/are holding small caps, then you could see the severe impact on your portfolio while the Nifty50 index, the one that is most widely seen, declined by a relatively modest 10.7%.

Whatever be your holding, you need to know where is your stop loss level or trailing stop level for booking profit.
If you did not plan for those levels while you entered the trades, it is probably better to go back to the drawing board and establish a systematic approach of investing that includes the profit booking as well as stop levels.

I also attach the CUE At A Glance weekly-daily chart of Nifty50. It has signaled yet another Go With Flow trend-following short setup as of today (3rd Sep).

India1 2019-09-03_9-08-05.jpg  India2 2019-09-03_9-15-11.jpg  India3 2019-09-03_9-14-11.jpg 

NIFc1 2019-09-03_9-04-03.jpg
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