Equities are looking to keep the streak of gains going today which over the past week has brought all of the major index ETFs—except for the Micro-Cap ETF (IWC)—out of extremely oversold territory and into neutral. As shown in the Trading Range section of our Trend Analyzer tool, the long tails to the left indicate the rapid moves from oversold levels for all of these indices. The move has been strong enough to lift more than half of the ETFs above their 50-DMAs. Large caps especially have moved the highest above this moving average. Small-caps, on the other hand, have continued to lag the rest of the market. The aforementioned IWC has seen the smallest gains of only 2.24% in the past week and is still 2.87% below its 50-DMA. Conversely, the Nasdaq (QQQ) has rocketed the most, rising 7.66% in the past five days. And still, QQQ remains under the 50-day!
Looking at the charts of the these ETFs, while they have mostly broken through resistance at the moving averages, yesterday’s session did show signs of exhaustion as they sold off from the intraday highs as some like the Dow (DIA) or Core S&P 500 (IVV) even continued to fall below the opening price (resembling the shooting star pattern). While this may be a bit of a sign of hesitation in the current rally, these ETFs have also recently broken out of their short term downtrends. In other words, the technical picture of the major indices has improved even if the rip higher from the past week takes a breather. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer, Chart Scanner, and much more.