After the S&P 500 (SPY) set a new all-time high last Thursday, stocks have yet to make a push back above these levels as all of the major index ETFs sit below where they were at last Thursday’s close.  This pullback was partially a function of the large-cap major index ETFs like the Russell 1000 (IWB) working off overbought levels.  Whereas all of these were overbought last week, currently only the Dow (DIA) still sits in overbought territory although other large caps are teetering on joining DIA.  The Core S&P Small Cap (IJR) and Micro Cap (IWC) are only lower by 0.41% and 0.33%, respectively. These are smaller losses compared to other ETFs which lost around 1%.  Ironically, this outperformance also comes as IJR and IWC are now showing sideways trends rather uptrends across the rest of the ETFs. Granted, not all small-cap indices have been outperforming. Another small-cap index, the Russell 2000 (IWM), has seen performance more inline with other ETFs, declining 1.07%.

Every sector except Materials (XLB) is lower over the last week.  As shown in our Trend Analyzer snapshot below, it’s the defensives that are finally lagging, with Real Estate (XLRE) down 4% and Utilities (XLU) down 2% since last Thursday’s close.  At the moment, only Materials and Health Care are overbought, while the rest are neutral.  Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer and much more.

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