As the S&P 500 finished last week at another all-time high, overbought and oversold conditions are largely unchanged from where they have been recently. Twelve of the fourteen major index ETFs are overbought while the remaining two are neutral.  While off of extreme overbought levels that a few of the indices briefly touched last week, many of those that are overbought still remain just under extreme levels.  With huge losses from certain weak earnings last week weighing heavy on the Dow (DIA), it was the only index to finish last week in the red and less overbought—though it is in fact still overbought.  Start a two-week free trial to Bespoke Premium to access our interactive Trend Analyzer and much more.

Pivoting over to the charts of these index ETFs, the large cap indices like the S&P 500 (VOO, SPY, IVV), S&P 100 (OEF), Russell 1000 (IWV), Nasdaq (QQQ), and Total Stock Market (VTI) have perhaps broken out the most distinctively.  Each of these ETFs have now clearly taken out resistance at last year’s highs.  Conversely, the Dow (DIA) has more distinctively failed to make a move higher.  DIA stopped short right at prior highs late last week; brought lower by weakness in earnings of some of the member companies like 3M (MMM).  While the Dow at least managed to make its way back up to its previous highs, the small and mid cap indices still have progress to make.  Other than the Russell Mid Cap ETF (IWR), each of the small and mid caps still sit well below prior highs.  Fortunately for the small caps, current overbought/oversold levels are giving them some room to run to make their way up to new highs as well.

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