It’s no April Fools joke. Finally, one of the major US index ETFs has re-entered a long-term uptrend according to our Trend Analyzer tool. That index ETF is the Russell Mid Cap (IWR). It is currently the second-best performer of the major index ETFs on a year to date basis with a gain of 16.47%. Small and Mid-caps, in general, are coming off of a very strong push in the final week of March. Each of these indices, except for the Micro-Cap ETF (IWC) and ironically IWR, all saw a gain of over 2.3% last week. Meanwhile, large caps did not head out of Q1 with the same bang. Last week, the Nasdaq (QQQ)—which has been and is still the most overbought ETF of the group—was only up 0.62%, and others like the S&P 100 (OEF) only rose 1%. While large-caps underperformed last week, they’re still predominantly overbought. Currently, eight of the major index ETFs are overbought, each being a large cap index. The lone large-cap that’s not overbought is the Dow (DIA) which joins the remaining six ETFs at neutral. Similarly, IWR is the only small to mid cap that is overbought.
Taking a look at the charts of these ETFs, the trends are a bit more evident. IWR’s uptrend comes as it is the only ETF to have distinctively broken above resistance set in Q4 2018. Still, like the other indices, IWR has been range bound more recently, not continuing its charge higher from earlier in the year with price in recent weeks somewhat stalling out just above these resistance levels.