As the S&P 500 and Nasdaq closed at new all time highs yesterday, conditions have made a push to more overbought levels.  While the Core S&P Small Cap (IJR) and Micro-Cap (IWC) are still neutral as they have been for the past few weeks, all other major index ETFs are overbought.  Four of which—the Dow (DIA), S&P 100 (OEF), Nasdaq (QQQ), and S&P 500 (SPY)—are now sitting at extremely overbought levels. Important to note, these are also some of the ones that have reached all time or new highs yesterday.  While they have made it to new highs and extreme overbought levels, with the exception of the Nasdaq, the gains over the past week have not necessarily been that strong.  This group is comprised of the only ETFs to have moved at least 1% or more over the past week.  The other ETFs, mostly small and mid caps, have been a bit more stagnant rising around 0.2%-0.5%. Again, the Nasdaq is a bit of an outlier as it has rallied 2.39% in the past five days.  The YTD gains are also blowing the other ETFs out of the water at 23.59%, over 3% more than the next highest gainer, the Russell Mid-Cap (IWR).

Looking at the individual charts of the ETFs above, the dichotomy between small and large caps becomes pretty evident.  While large caps like the S&P 500 have distinctively retaken last year’s all time highs, small caps and mid caps both have a lot of progress to make up until they do the same.  For example, the Micro-Cap ETF (IWC), which has been the weakest in the group recently, has yet to even make a recent high let alone a new 52-week high.  Start a two-week free trial to Bespoke Premium to access our Trend Analyzer tool and much more.

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