One week ago, small-caps—like the Micro-Cap ETF (IWC), Russell 2000 (IWM), and Core S&P Small Cap (IJR)—and the Nasdaq (QQQ) had all been unable to move out of oversold territory like the other major index ETFs. That has changed this week as all of the US index ETFs tracked in our Trend Analyzer tool are currently neutral. While they have moved out of oversold, small-caps are still lagging in the sense that they remain the furthest below the 50-DMA. Other indices either sit just below or have broken above in the past week. The Nasdaq has seen the most notable move towards the 50-day, surging 3.27% out of oversold territory. A weak earnings report from Broadcom (AVGO) last night has put pressure on the semis, and as a result, the broader technology sector and a tech-heavy Nasdaq. This is likely to eat into some of these gains today so it may take a bit longer until QQQ takes out the 50-day.
Over the past week, like the major index ETFs, the different style ETFs are almost entirely sitting at neutral. Although, there are some outliers like the S&P Low Volatility (SPLV) which is working its way out of extreme overbought levels (presumably as a flight to safety following May declines). One trend this week but also generally in 2019 to take note of is the outperformance of growth stocks versus value. Broadly speaking, the growth-focused ETFs like the Growth ETF (VUG) have been outperforming their value-focused peers by around 1% in the past week. This is the case across most of the indices and market caps, though, S&P Small and Mid Cap have seen slight outperformance of value. This is more evident in small caps. Additionally, earnings has been outpacing dividend-focused ETFs. Start a two-week free trial to Bespoke Institutional to access our interactive economic indicators monitor and much more.