Yesterday’s 1%+ rally for US markets left the six major US index ETFs across market cap levels all back above their 50-day moving averages. As shown in the snapshot below pulled from our Trend Analyzer tool, all six of these index ETFs are up double-digit percentage points year-to-date, and they’re all up more than 2% over the last week as well.
Five of the six are trading in overbought territory, which means they’re more than one standard deviation above their 50-day moving averages. The Russell 2,000 smallcap ETF (IWM) is the lone one in the group that’s not overbought. Start a two-week free trial to Bespoke Premium to access our interactive research portal. You won’t be disappointed!
Five of the six have just recently experienced “golden cross” technical formations, which occurs when the ETF’s 50-day moving average crosses above the 200-day moving average as both moving averages are rising. While DIA (the Dow 30) and IWR (midcaps) experienced golden crosses a couple of weeks ago, the Nasdaq 100 (QQQ) and the S&P 500 (SPY) just saw golden crosses in the last two trading days. For analysis of how bullish or bearish a “golden cross” formation is, check out this report we published on the topic yesterday.