How does one short down here?

How does one short down here and position for a rebound?

I think the best bet is pair trading. Pair trading is betting on the relative value of one item with another. Like long Nasdaq and short Russell 2000


You can see that the Nasdaq hasn't rallied in comparison with the Russell2000.

So in a pair bet, one would be long the Nasdaq and short the Russell with the working idea that growth stocks with plenty of cash will outperform the small cap domestic companies as represented in the Russell.

The low for this ratio was 2006 and has plenty of room on the upside as shown by the chart.