Another day of gains yesterday has helped to push every major index ETF out of oversold and into neutral territory; something we haven’t seen since the end of November.  These index ETFs tracked in our Trend Analyzer have been predominantly oversold since early December and even reached very extreme levels at some points.  While they may not be oversold, they have yet to break out of their downtrends and none have taken out their 50-DMA.  Also of note is the divergence between the performance of large cap versus small cap ETFs.  Of these names, small caps continue to lead the way as the Micro-Cap ETF (IWC) is up 6.48% in the last week and 5.58% since the start of the year.  That is a major degree of outperformance when compared to the Dow (DIA) which is only up 2.12% in the past 5 days and 0.93% on the year.

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