The fourteen ETFs tracking the major US indices in our Trend Analyzer tool are still split down the middle with half overbought and the other half neutral. While large-cap ETFs are overbought after sitting at neutral last week, conditions are less overbought and closer to the 50-DMA with declines over the past two sessions. Weekly performance is still solid though with most of these ETFs up just under 2%. The Nasdaq (QQQ) and Dow (DIA) have actually outperformed with even larger gains of 2.41% and 2.34%, respectively. With this, DIA has become the most extended above the 50-DMA. Small caps, meanwhile, have continued to lag behind. The Micro-Cap ETF (IWC) and Russell 2000 (IWM) are both down over the past week. In fact, IWC is just barely sitting above oversold levels. While not in the red, mid-caps like the Core S&P Mid-Cap ETF (IJH) and S&P Mid-Cap 400 (MDY) have also been fairly week relative to other market caps.
Looking at the charts of these same ETFs, with declines in the past couple of sessions bringing the ETFs off of new highs, former resistance at previous highs has not necessarily held as support for indices like the S&P 500 (SPY). Only the Dow (DIA) is still sitting noticeably above these prior highs. Doubling back on smaller-cap ETFs’ recent weakness, others like the Russell 1000 (IWB) and Russell Mid Cap (IWR) have more clearly broken below these levels. Additionally, for these ETFs, the failure to take out both the 200 and 50-day moving averages is pretty clear. Each sits below these averages, despite some like the Core S&P Mid-Cap ETF (IJH) and Russell 2000 (IWM) managing to close above both the 200 and 50-day last week. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer, Chart Scanner, and much more.