Most of the major index ETFs are relatively unchanged within their recent trading ranges over the last week. Mid-caps have pressed higher on some of the strongest gains over the past week, leading them to rejoin large-caps in overbought territory. Meanwhile, small-caps like the Core S&P Small-Cap (IJR) and Russell 2000 (IWM) continue to lag behind and are still only at neutral levels. While IWM and IJR have not done great, the Micro-Cap (IWC) has lagged by a much larger margin. Now with the smallest YTD gain of the major index ETFs, IWC has dropped through the 50-DMA on a 1.61% decline in the past week. No other major index ETF currently trades below the 50-DMA or has seen nearly as large of a decline, and IWM, IJR, and the Russell Mid-Cap (IWR) are the only others down versus last week. More importantly, our Trend Analyzer is now showing that IWC is in a downtrend.
Peering at the chart for IWC, that downtrend has become more apparent. After reaching its highs almost one year ago, IWC fell sharply down to its December lows. After a significant rally in the beginning of the year, it ran into resistance around late 2018 highs and has been stuck in consolidation ever since. Earlier this month, IWC managed to close and hold above the 200-DMA for the longest span of time since last year, but it never made a considerable move higher. In the past two weeks, it has begun to turn lower running into resistance at its downtrend line; reaffirming a longer-term downtrend. Start a two-week free trial to Bespoke Institutional to access our interactive economic indicators monitor and much more.