For the first time since December 17th of last year, one of the major US index ETFs is not in a downtrend. Tacking on another day of gains has led the Dow (DIA) to finally register as trending sideways. While that still may not be the uptrend bulls would hope for, it is certainly an improvement as not a single major index ETF has shown anything but a downtrend in the past two months. Yesterday’s gains also bring the group increasingly close to extremely overbought conditions (2+ standard deviations above the 50-DMA). As they have raged on this year, small caps are the closest to moving into that range. Of these, the Core S&P Small-Cap (IJR) is the most likely to be the first to become extremely overbought. IJR has also been one of the top performers this week as it is up 3.41%.
The aforementioned trends are a bit more obvious when looking at the charts of the ETFs. Taken from our Chart Scanner tool, as six-month charts the ETFs illustrate, they have all recovered from their late 2018 lows reentering the range from before the steep December declines. Being in this range, they are still well off of highs from the Fall but have also all broken their downtrend lines. Some like the S&P 500 (SPY) have actually come back to bounce off of these lines as support. In other words, the charts are still showing downtrends (price broadly going down and to the right), but these downtrends are showing signs of weakness.