Unless you went off the grid yesterday, you probably already know of the major selling seen throughout the market. So far this October has not been a kind month to US equities, and yesterday was far from an exception with the Dow falling 3.15%, the S&P 500 down 3.29%, and the Nasdaq down 4.08% on the day. Our Trend Analyzer is showing the severity of the selloff. Currently, there is only one major US Index ETF that is not oversold, the Dow (DIA). The DIA has recently been one of the best performers of this ETF group. While all others were pushing towards their 50-DMA or oversold territory, the Dow has been holding firm; that is until this past week where it has joined its peers. It has moved from deeply overbought all the way down past its 50-DMA on the cusp of oversold. With it set to open lower today, it should come as no surprise if it becomes oversold. All the other ETFs of this group are now deeply oversold and well below their 50-DMAs. You can see through the long tails in the Trading Range just how severe of a movement these assets have had in the past week. Every one is now down well over 4% from this time last week.
For comparison, below is the Trend Analyzer for yesterday before the open. As you can see, in the past week things have not been great. Selling off has been widespread before yesterday’s large movements with every ETF down from 5 days prior. But most of these ETFs had held their strong gains YTD. Today that is not the case. Most ETFs are still edging out gains since the beginning of 2018, but you can see the major difference in how much those gains were between today and yesterday. The Nasdaq (QQQ) is about 5% lower than it was YTD. On top of this, it has been the biggest loser of the group in the past 5 days, falling 7.55%. For the Russell Mid-Cap ETF (MDY), the situation is not as rosy. Losses yesterday have actually made the ETF fall 0.09% YTD after being up 2.92%!