Despite a sour start to the week on Monday, strong gains have lifted the major index ETFs out of extreme oversold levels over the last two sessions. Nine of these ETFs have now worked off their oversold levels and sit at neutral. The five other index ETFs that are still oversold are primarily small caps including the Russell 2000 (IWM) and Micro-Cap (IWC), though, large caps like the S&P 100 (OEF) and Nasdaq (QQQ) also remain oversold. IWC is the only one of these ETFs to still be lower than this time last week. While IWC sits 0.29% lower, the rest have seen a variety of gains ranging from the Nasdaq’s (QQQ) meager 0.1% move all the way up to a 2.76% gain from the Russell Mid Cap (IWR). In addition to IWR, other mid-caps have also outperformed rising over 2%. These large gains over the past week now leave IWR the closest to its 50-DMA too. MM_Member_Decision ismember=’false’]Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.[/MM_Member_Decision]
Looking at the industry groups, those exposed to oil, which has fallen sharply recently, are currently the most oversold. Moving with oil, the Dynamic Energy E&P (PXE) and S&P Oil and Gas E&P (XOP) are both down the most of all industries over the last week with a 4.8% and 4.73% loss, respectively. Semiconductors (SMH), which fell hard on Monday (some like AMD or NVDA fell as much as 7%), have rebounded this week now having risen 2.51% but are still oversold. While oil has fallen, another commodity has surged: gold. The Junior Gold Miners ETF (GDXJ) and Gold Miners ETF (GDX) are now both up over 10% in the past week. Even with this rally, they are still not the most overbought. Real Estate (IYR) actually holds that accolade as it currently stands at an extreme level. The REIT ETF (VNQ) and Solar ETF (TAN) are not quite at an extreme yet but have also become very overbought. TAN is actually the best-performing industry group ETF this year with a gain of 44.58%.