The Russell 2000 slid more than 5% in the past month as the yields on the 10-year and 30-year Treasuries climbed to levels not seen since the early 2000s, while the Nasdaq-100 advanced over 5% in the same period.

BTIG analyst Jonathan Krinsky noted the Russell-2000 is roughly 16% weaker than the Nasdaq-100 on a relative basis, with the ratio’s RSI at 12.77 — a reading that has fallen below 14 only four times since 1985, with the prior instances in July 2007, August 2011 and March 2020.

Krinsky added that although such oversold conditions do not guarantee a bottom, a buying opportunity could emerge if yields begin to move lower, as signs of yield exhaustion appear. He also said a meaningful further decline in yields could support the Russell 2000.

Barclays highlighted Ultra Clean Holdings, Penguin Solutions and PTC Therapeutics as small-cap names that could outperform if a rebound takes hold.