Risk trades are under threat one again after the few sparse economic releases of the week have so far managed to disappoint and the momentum of the recent rebound rallies starts to fade. This morning’s Eurozone final GDP reading confirmed a 0.2% QoQ pace of growth in Q1, but German factory orders in May significantly undershot estimates at -0.5% MoM (compared to consensus estimates of 0.3%)….

The Russell 2000 ETF (IWM) surged above 61 intraday, but gave up sizable gains and closed near 59. The ETF even closed below last week's low. The indicator window shows the IWM:SPY ratio, which compares small-caps to large-caps. This ratio is moving lower as small-caps lead lower.

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