Last month’s declines extended into the final days of May bringing all of the major US index ETFs deeper into oversold territory.  The Micro-Cap (IWC) has gotten the most oversold as it sits over 3 standard deviations below its 50-day moving average.  This comes as it fell 2.88% last week; the greatest decline of these ETFs.  While the rest are not quite as extended to the downside, they are in fact all extremely oversold (2 or more standard deviations below the 50-DMA).  As seen by the long tails to the right in the trading range section of our Trend Analyzer tool, some of these ETFs, particularly large caps, had been only barely oversold at the beginning of last week. But these same ones saw some of the largest losses last week bringing them to their currently extreme oversold levels. For example, the S&P 100 (OEF) and Dow (DIA) both fell 2.69% and 2.57% last week, respectively.  With the exception of the previously mentioned Micro-Cap ETF (IWC), small and mid caps held up slightly better. The declines though were still steep as only the Russell Mid-Cap (IWR) fell by less than 2%.  Start a two-week free trial to Bespoke Institutional to access our interactive economic indicators monitor and much more.

No sector has been safe from selling but defensives had been holding up better recently.  Last week, though, this was not so much the case.  Utilities (XLU) fell 2.79% last week while Consumer Staples fell 3.67%. Similarly, XLP had been overbought and has now fell through the 50-DMA into oversold territory. Energy (XLE) has also taken it on the chin as oil saw steep declines last week.  XLE fell the most of all sectors last week with a 4.27% decline.

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