Large-cap indices rallied into the end of the week to finish at all-time highs.  The Nasdaq 100 (QQQ) surged 1.3% in the past five days, and QQQ has now risen the most of any of the major index ETFs in 2019. Meanwhile, the Dow (DIA), which is the worst-performing large-cap index YTD, received a boost from UnitedHealth (UNH) and finished as the best performing major index ETF last week with a gain of 1.53%.  This not only sent the index above the 27,000 milestone, but also brought it up to extremely overbought levels.  DIA is currently the only major index ETF at extreme overbought levels, although ten others are also overbought and approaching extreme levels.  Small caps, on the other hand, all remain neutral with further declines last week.  Mid-caps shared in these losses but to a lesser extent.

Small and mid-caps have continued to lag their large-cap peers and last week’s break out to new all-time highs for the likes of the Dow (DIA) and S&P 500 (SPY) has made this lag even more evident in the charts. The DIA, QQQ, S&P 500 (SPY & VOO), Core S&P 500 (IVV), Russell 1000 (IWB), S&P 100 (OEF), and Total Stock Market ETF (VTI) are now all in uncharted waters as they have broken out to new all-time highs.  As we mentioned in Friday’s Bespoke Report, while the Dow and S&P 500 breakout was more clear cut, QQQ’s was a bit less convincing.  Similarly, small and mid-caps—except for the Russell Mid-Cap (IWR)—all sit firmly below their prior highs from late last year. While they have made some higher highs earlier this year, they have still sat in consolidation and continue to move sideways rather than distinctively higher. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer, Chart Scanner, and much more.

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