This morning there is one less overbought ETF bringing the total number of major index ETFs at neutral to three while the eleven others are overbought. Those that are overbought have fallen off of near extreme levels that we have seen over the past week as well. The ETF that has moved from overbought to neutral is the Russell 2000 (IWM) on a loss of 0.77% over the past week. Despite this loss, it now has a good timing score; the only one of the group that can boast this. IWM is not alone in sitting in the red on the week. The Russel Mid Cap (IWR), Core S&P Small Cap (IJR), and to a greater extent, the Micro-Cap (IWC) are all also down. IWC’s losses blow the others out of the water, shedding 1.93% over the past five days, bringing the year to date gain down to 13.61%, the second worst of the group behind the Dow (DIA). Large caps, in general, are a little all over the place. Ironically, while the large-cap Dow is up the least this year, over the past week it and the other large caps have outperformed.
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Turning to the individual sectors, like the large caps, things are a bit all over the place. Currently, there are four extremely overbought sector ETFs, four that are overbought, two neutral, and one that is extremely oversold. Financials (XLF) have surged over the past week rising 3.51% on the back of a string of strong earnings reports out of the big banks. While their gains have been more middling, Communication Services (XLC), Consumer Staples (XLP), and Consumer Discretionary (XLY) are the others that are sitting at extreme overbought levels. Over the past week, the Utilities sector (XLU) and Real Estate (XLRE) have seen losses, bringing both below their 50-DMAs. XLRE has been hit particularly hard and is now down 3.56% over the past five days. Believe it or not, this is still far from the worst performer. As we have repeatedly highlighted in the past week, Health Care (XLV) has been absolutely abysmal. Falling 6.53% since last Thursday, it is now negative on the year; the only ETF to be able to claim this by a wide margin. These declines have brought the sector to extremely oversold levels. So much so that it is basically off the chart of our Trend Analyzer.