Equities’ massive rally in yesterday’s session was exactly what the major index ETFs needed to work off the extreme oversold levels they have been sitting in or around for the past week. Currently, none of these ETFs are sitting at extreme levels, though, 11 are still oversold. For most, these oversold levels are actually teetering on neutral after yesterday’s 2%+ rally! The three mid-cap ETFs have actually moved into neutral territory. All three of these have outperformed in the past week with gains well over 1%. No other index ETF comes close to these gains. On the other end of the spectrum, the Nasdaq (QQQ) is still sitting 1.48% lower than 5 days ago and is the only one of the group to be more oversold than it was last week (as seen through the red dot, rather than green, in the Trading Range section of the Trend Analyzer). Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer, Chart Scanner and much more.
Using our Chart Scanner tool to pan through the charts of these same ETFs, most of the major indices are still sitting in short-term downtrends, though, yesterday’s surge helped to lift some slightly above the downtrend lines or at least to the top of these downtrend channels. Another interesting technical point to make: over the past few sessions, several of these ETFs including the Total Stock Market ETF (VTI), the S&P 500 (SPY and VOO), Nasdaq (QQQ), Russell Mid Cap (IWR), Russell 1000 (IWB), and S&P 100 (OEF) have found support around lows from a pullback earlier in the year when the market ran up to prior resistance at last year’s highs before the sharp December sell-off. Some like IWR and IWB have also found support at their moving averages. Others like the Core S&P Mid-Cap (IJH), the Core S&P Small Cap (IJR), and the Micro-Cap ETF (IWC) have fallen through these levels recently and now sit at the lower end of the range from last fall.