As US tech giants are put under the microscope with Facebook (FB), Alphabet (GOOGL), and Apple (AAPL) all now under investigation, the Nasdaq (QQQ) fell over 2% yesterday. These declines have brought it to the deepest oversold levels of all the major index ETFs. QQQ is also now down the most over the past 5 days having shed 4.51%. While every other ETF in this group is still also extremely oversold, mid-caps have begun to bounce off of these extreme levels. The Core S&P Mid-Cap ETF (IJH), Russell Mid-Cap ETF (IWR), and S&P MidCap 400 ETF (MDY) have all managed small gains over the past couple sessions and are outperforming their peers. IWR is perhaps the most interesting of these three as the past two session’s gains have come after the ETF found support at the 200-DMA. Additionally, it now sits with the largest YTD gain of 13.54% Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.
Turning over to commodities, the rout of oil has continued and the ETFs tracking oil are about as oversold as it gets in our Trend Analyzer. In the past week, the United States Oil Fund (USO) and DB Oil Fund (DBO) have lost 10.14% and 9.46%, respectively. While holding up slightly better, the DB Energy Fund (DBE) has also fallen considerably, down 8.2% in the same time. Along with the DB Commodity Index (DBC), these three all closed over 3 standard deviations from the 50-DMA. On the other hand, while equities have slid, gold has gotten bid up as the DB Gold Fund (DGL), Gold Trust (IAU), and Gold Shares (GLD) now all sit over 3% higher from last week. Each of these gold ETFs now sit deep into overbought territory. Another interesting point to make on gold is that this recent run higher has brought the metal out of its short term downtrend, but on a longer term it is still moving sideways. The DB Precious Metals ETF (DBP) and silver (SLV) have similarly seen strong gains of 2.77% and 1.97 %, respectively.