The overbought/oversold picture is unchanged from yesterday with five major index ETFs in neutral territory while the remaining nine are all overbought. Not only has there been little change from yesterday, but there is also not much difference compared to levels from last week as seen through the lack of any tail in the Trading Range section of our Trend Analyzer for multiple ETFs. Small and mid-caps continue to underperform and all sit lower versus five days ago while large caps like the Nasdaq (QQQ) and S&P 100 (OEF) have outperformed.
As the market has pulled back from record highs over the past week, Materials (XLB), Industrials (XLI), and Energy (XLE) have all led the way lower. XLB, in particular, has run into a rough patch and is now down 2.17% working off of overbought levels from last week. Meanwhile, XLI and XLE have also seen losses of 1.02% and 0.85%, respectively. With these losses, all three of these sectors now sit in neutral territory. With more cyclical sectors like XLB and XLI lagging, defensives have been surging as XLRE and XLU have outperformed. XLRE has surged 3.68% this week and XLU has rallied 2.3% in the same time. Last week, both of these, in addition to Communication Services (XLC), were only in neutral territory, but the recent gains have brought them up back up to overbought levels. Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer and much more.