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Trends for US Indices, Sectors, and Country ETFs
Our Trend Analyzer tool lets Bespoke members quickly and easily check on the status of US stocks and ETFs. Below are snapshots of our Trend Analyzer tool as of yesterday’s close for various ETFs across US indices and sectors as well as key country stock market ETFs.
Below is a look at the major US index ETFs from large caps to small caps. All of them are currently in overbought territory in long-term sideways trends. For these ETFs to turn back into uptrends, we’ll need to see a breakout to new highs in the near term. New highs are quite a bit away for indices like the Russell 2,000 (IWM) that are still down significantly year-to-date. But the Nasdaq 100 (QQQ) is a lot closer to a new high given that it’s up 11% on the year! Heading into today, QQQ is only 0.8% away from its high made back in February.
Ten of the eleven major S&P 500 sectors are currently trading in overbought territory with Health Care (XLV) the only sector that’s not overbought. Health Care is very close to overbought, however, which you can see in the snapshot below.
Notably, four of eleven sectors are now up year-to-date — Communication Services (XLC), Technology (XLK), Health Care (XLV), and Consumer Discretionary (XLY). Energy (XLE) and Financials (XLF) are still down 20%+ year-to-date, while the Industrials sector is down 15%.
All of the major country ETFs are overbought as well, with four in extreme territory (which means they’re more than two standard deviations above their 50-DMAs). These four that are the most extended from their normal trading ranges are Germany (EWG), Italy (EWI), Japan (EWJ), and France (EWQ).
On a year-to-date basis, the US (SPY) is now doing the best with a decline of just 3.69%, while the UK (EWU) is down the most at -21.55%. Start a two-week free trial to Bespoke Premium to start using our Trend Analyzer tool today.
Bespoke’s Morning Lineup – 6/3/20 – Global Rally Rolls On
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Futures are indicated higher, setting the stage for a 7th daily gain in the last 8 sessions. Futures were already higher, but the May ADP Private Payrolls report which came in much less bad than expected (-2.76 million vs 9.0 million consensus estimate).
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, surging mortgage applications, the latest round of Service sector PMIs, news in global markets, global and national trends related to the COVID-19 outbreak, and much more.
After underperforming in a big way for most of 2020 (and even longer than that), European equities have gotten a big boost in recent days, aided in part by the weaker dollar. The relative strength of Europe’s STOXX 600 in dollar adjusted terms has shown signs of life versus the S&P 500 and appears to have broken its short-term downtrend. That’s a trend to watch in the coming weeks as Europe is ahead of the US in terms of re-opening, and last week’s announced collective fiscal relief plan for member countries suggests more cohesion within the bloc.
On a short-term basis, European equities have looked more attractive, but a long-term picture shows a much different picture. Here, the recent strength off the May lows isn’t even visible. In other words, Europe still has quite a hole to dig itself out of. But hey, you have to start somewhere!
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Bespoke Stock Scores — 6/2/20
Hard to Find A Stock Below Its 50-Day
In today’s Morning Lineup, we noted that 100% of S&P 500 Industry Groups are now above their 50-DMAs. But individual stocks have been equally as impressive in regards to their 50-DMAs. As of yesterday’s close, 96.24% of S&P 500 stocks finished the day above their 50-DMAs. Including yesterday, there have only been five days since 1990 that has seen as strong if not stronger readings. All of those occurred in mid-February and early March of 1991. So it has been quite some time since the S&P 500 last had this many stocks trading above their 50-days.
Given the strong reading for the broader index, for the first time since March of 2016, there are four sectors with 100% of their stocks above their 50-DMAs: Communication Services, Energy, Industrials, and Materials. Consumer Discretionary is also close at 98.41%. Every other sector has at least 90% of their stocks above except for Utilities. Granted, it is by no means weak or far behind the rest of the pack with a reading of 89.29%.
The charts below from our Daily Sector Snapshot show the percentage of stocks above their 50-DMAs by sector over the last year. For the sectors with 100% of their stocks currently above their 50-DMAs, it has understandably been a while since the last time they read 100%. For Communication Services, the current string of days with 100% of stocks above their 50-DMAs has been the first since September of 2018. For Energy and Industrials, this has been the first time since February of 2019 and for the Materials sector, the last time that 100% of stocks were above their 50-days was July of last year. Start a two-week free trial to Bespoke Institutional to access our interactive economic indicators monitor and much more.
