It has been some time since we last saw even one of the major index ETFs in the neutral part of its trading range. Whereas all of these ETFs have remained oversold to extremely oversold for the past few weeks, the recent rally has helped to lift six of them out of this range. The remaining eight, while still oversold, are all on the verge of moving to neutral. With steep declines to close out 2018, it has also been some time since we have seen YTD performance in the green, but we are starting off this week with exactly that. Despite the recent moves higher, though, all of the index ETFs all remain below their 50-DMA. The closest of any of them is the S&P 100 (OEF) which is still 3.96% away.
An important factor to note of this most recent rally is the outperformance of small caps as they had been mattered the most towards the end of last year. The Micro-Cap (IWC) leads the way higher with a gain of 6.03% in the past week and 3.82% since the start of the year. The Russell 2000 (IWM) and Core S&P Small-Cap (IJR) have also done remarkably well with each up well over 3% over the past five days. Meanwhile, larger caps have lagged with a prime example being the Dow (DIA). Granted, last week’s warning from Apple (AAPL) of weaker sales has been a big contributor to the large-cap underperformance.