As we have seen over the past few days, in the midst of some choppy price action, the major index ETFs continue to shed their downtrends. In spite of declines yesterday, there are once again fewer ETFs in downtrends than the prior day. Currently, there are only three that remain in downtrends. Each of these three are small-cap focused ETFs (IJR, IWC, IWM). Ironically, these are also some of the best performing members of the major index ETFs year to date. The Russell 2000 (IWM) and Micro-Cap (IWC) are the top two performers up 17.11% and 16.34% YTD, respectively.
Turning to performance over the past week, things are unfortunately not as positive. There are only two ETFs that have managed to edge out gains: the S&P 100 (OEF) and the Nasdaq (QQQ). All others have seen declines ranging from only a few basis points to 1.65%. These declines have also shifted the overbought/oversold conditions that we have been observing over the past few weeks. Whereas everything has been solidly overbought, and each ETF still has an overbought rating, it is currently much less firmly so.