"This is one of the most eye-popping charts we send to people," she said. "That's in line with where we were in the tech bubble."
Traders have been concerned that the Russell's selloff could spread like poison to the broader market. But some strategists believe the Russell could remain isolated, as it was driven higher—and then lower—along with momentum names in the Internet sector and biotech.
Daniel Greenhaus, chief global strategist at BTIG, said he thinks the Russell is starting to bottom.
Read MoreTraders lament low volatility, 'churn'
"There's no way to prove it but my feeling is small caps are bottoming," Greenhaus said, noting he does not necessarily see any further selloff in the Russell to spread to big caps.
Greenhaus also believes the S&P 500 could be in a sideways correction, and has made that call since February. Since late February, the S&P has not moved more than 5 percent between its high and low, the smallest three-month range since 2006.
"Just look at the action since early March. Since the 4th, which is when the Russell peaked, the Russell is down 7.8 percent, and the S&P is up 1.1 percent. So don't take my word for it, the market actions says large caps can ignore the decline in small caps ... I also wouldn't get excited about large caps because small caps are bottoming."
Read MoreSideways correction may be the real story
O'Rourke said if the Russell were to trade much lower, traders would start to watch for the negative "death cross" chart pattern, where the 50-day moving average (now at 1,141) passes through the 200 day (1,117), suggesting negative momentum.
"A phase of consolidation for a month at the 1,100 level would be healthy," he said.
What to Watch
CNBC will air an exclusive live interview with Russian President Vladimir Putin in the 6 a.m. ET hour.
New home sales are reported at 10 a.m. ET.