Unlike the big-cap indexes, the Russell went negative for the year last week and is now up 1.3 percent year-to-date, thanks to Tuesday's rally. The S&P is up 2.4 percent for the year.
"I don't know if we're entirely out of the woods yet. The valuation data we look at hasn't totally collapsed yet. I do think we're going to be up for the year... I think we're going to be roughly 10 percent higher by year end," Calvasina said.
Before Tuesday's upswing, the Russell was off about 10 percent from its April 29 record closing high of 865.
"It held long-term support yesterday and is the strongest performer today. It's helping lead the bounce. ...I would say around 810 to 815 is going to be a big area of resistance. For the Russell, the question is, like for this whole market, is it an oversold bounce or day one of an uptrend?" said Scott Redler of T3live.com. "Or is it quadruple witching (expiration of futures and options) coming up this Friday?"
Redler said he believes the Russell still has a ways to go lower, and that the market is rising in an oversold bounce. "Bottoms don't usually come in June. They come in August or October," he said.
The Rusell 2000, which is reconstituted annually, is being revamped this year with new definitions for growth and value. The stocks within the Russell are all small cap and should have a market cap between $130 million and $2.9 billion. Therefore, some of the high-flying tech names in the index will no longer qualify and would move to the Russell 1000.
Some of those names are Riverbed Technology , Tibco Software , Ariba and Acme Packet .
Calvasina said the current sell off does not seem like the correction of last July, when the Russell lost 20 percent in 46 days.
"Let's say we get a 15 percent drop. That's 735...That's the number that's been in the back of my head. I think in small cap, the momentum can be strong one way or the other, but this is the time you want to be doing your homework," he said.
But she does say the valuations have made some small cap companies appealing again. At the end of last year when the market was moving higher, she notes hedge funds jumped into ETFs (IWM) that track the Russell, driving all companies in the index higher, even those that did not deserve high valuations.