While the market pressed to new highs last week, conditions for large-cap index ETFs have become firmly overbought. Meanwhile, small and mid-cap major index ETFs lagged behind slightly. The Micro-Cap (IWC) and Core S&P Small Cap ETF (IJR) both remain neutral and currently sit below the 50-DMA. Another small-cap index, the Russell 2000 (IWM), saw slightly stronger performance than the aforementioned two and is just barely above its 50-DMA. Mid-caps are also neutral but sit more firmly above the 50-DMA, although the Russell Mid Cap (IWR) has moved into overbought levels. The Nasdaq (QQQ) was a bit of an outlier last week. In addition to considerably outperforming the other ETFs with a 3.25% gain over the past five days, it is also the only large-cap index to remain neutral after it was below the 50-day only one week ago. But these gains have now led the index to sit on the border of neutral/overbought.
Turning to the individual sector ETFs, Energy (XLE) went on a tear last week rising 4.18%. This lifted XLE off of oversold levels, and despite handily outperforming the other sectors, it still sits just below the 50-DMA. While there are five sectors that are currently overbought, Health Care (XLV) has actually reached extreme levels. While XLE and XLV have been ripping higher, defensives—Real Estate (XLRE), Utilities (XLU), and Consumer Staples (XLP)—have taken a breather after hitting extreme overbought levels last week. Start a two-week free trial to Bespoke Premium to access our Trend Analyzer tool and our unique equity market research.