A busy week of earnings is kicking off with eleven of the major US index ETFs overbought while the remaining three are neutral. Of those that are overbought, large caps have done the best in the past five days with the Dow (DIA) leading the way with a 1.59% gain. The S&P 100 (OEF) and Nasdaq 100 (QQQ) have also seen solid gains of 1.15% and 1.28%, respectively. The performance of mid-caps has been a bit more mixed while small caps have started to lag. Currently, each one is neutral; the same as last week except for the Russell 2000 (IWM) which had been slightly overbought. Of the small-cap indices, the Core S&P Small Cap (IJR) has held up the best only down 0.34%. Meanwhile, the Micro-Cap (IWC) has gotten battered. IWC heads into the new week 2.1% lower than where it stood at the beginning of last week. It now also has the smallest YTD gain of the major index ETFs and is the only one to have fallen below its 50-DMA and is now approaching oversold territory. As we noted in a Chart of the Day earlier this month, the small-cap space has a heavy weight in Health Care, so that sector’s weakness is causing a lot of the recent underperformance versus the large-cap space. Start a two-week free trial to Bespoke Premium to access our interactive Trend Analyzer tool and much more.
As the S&P 500 nears its all-time highs set last fall—currently over 1% away—some of the other major index ETFs have managed to breakthrough though they have not stayed there. Some like the Core S&P 500 (IVV), Russell 1000 (IWB), Russell Mid-Cap (IWR), and S&P 500 (VOO) all briefly broke above these levels last week but could not hold them. Meanwhile, the Nasdaq (QQQ) has actually broken out and managed to close out the week above last year’s highs.