With yesterday’s gains further adding onto the past week’s surge from below the 50-DMA, the Micro-Cap ETF (IWC) is now overbought for the first time since the first week of May.  As IWC makes this move, there is no longer a single major index ETF that is not overbought.  We have been making note of small and mid-caps outperformance over the past week, and as the Dow (DIA) and Nasdaq (QQQ) both sit lower over the past five days, this trend has only been exacerbated. In the past week, small caps have risen over 2% while mid-caps have likewise tacked on an over 1.5% gain.  This stronger performance has also helped to change the trends of mid-caps to once again show uptrends.

While every major index ETF is now overbought, the trends for commodities are looking a bit different.    Natural Gas (UNG) has taken a beating this year, losing almost 25% year-to-date.  This week alone it has fallen 5.94% and is now several percentage points below its 50-day moving average.  Likewise, while it has been in a long-term downtrend for some time, recent losses have also brought the DB Agriculture Fund (DBA) into extreme oversold territory. Only a week ago DBA was above its 50-DMA. Meanwhile, precious metals remain overbought with solid gains both YTD and over the past five days.  After its significant rally in the past weeks, Silver (SLV) in particular has become the most extended as it is currently at extreme overbought levels. But it has also been moving lower within this trading range.  The best performing commodity in the past week has been oil.  The DB Oil Fund (DBO) and US Oil Fund LP (USO) have both outperformed with gains of 1.79% and 2.29%, respectively.  One week ago, these two ETFs were only at their50-DMA so these gains over the past week have not yet brought them into overbought territory. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.

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