We are capping off the quarter with a somewhat mixed picture as seen through our Trend Analyzer tool. There are currently five overbought ETFs while the remaining nine are neutral. Every ETF has seen a bit of mean reversion in the past week as seen through the long tails in the trading range section. Whereas many were firmly or—in the case of the Nasdaq (QQQ)—extremely overbought not long ago, about half are now teetering between overbought and neutral. Others are more firmly neutral with the Core S&P Small Cap (IJR) and Micro Cap (IWC) actually both moving below their respective 50-DMAs. Additionally, not a single ETF has managed to work its way into the green this past week as almost every index ETF has declined 1% or more as the hit from last Friday still lingers. Headed into today’s trading, the Micro-Cap (IWC) has seen the worst of the selling with a decline of 2.54% over the past five days. Coming off of the strongest overbought levels of the major indices, the Nasdaq (QQQ) has similarly been hit hard falling 2.33% in the past week. Meanwhile, Mid-Caps have actually held up relatively well. The Core S&P Mid Cap (IJH) and S&P MidCap 400 (MDY) are both down less than 1%, while their peer, the Russell Mid Cap (IWR), has only shed 1.05%.
Turning to individual sectors, only Real Estate (XLRE) and Consumer Staples (XLP) are up in the past week with gains of 0.72% and 1.07%, respectively. They have also become the most overbought sectors. Consumer Discretionary (XLY) is also still pretty elevated but has pulled back slightly this week. Meanwhile, Health Care (XLV) has taken quite the hit falling from overbought territory to below its 50-DMA. Similarly, after falling below the 50-DMA, Financials (XLF) have gotten pretty oversold, although it has rebounded in the last couple of days.