In what has been a very volatile week so far, yesterday’s big move lower has left the major US index ETFs wholly oversold. Despite falling over 3% in yesterday’s session, the Nasdaq (QQQ) is actually the least oversold and down the least over the past week. On the other hand, small and mid-caps in addition to the Dow (DIA) have been the worst performers and have all fallen over 2 standard deviations below their 50-DMAs. This is after most of the major index ETFs were in neutral territory one week ago. This large move lower within each ETFs’ respective trading range can be seen through the large tails to the right in our Trend Analyzer tool.
Breaking up the past week’s move lower by individual sectors, defensives like Real Estate (XLRE), Utilities (XLU), and Consumer Staples (XLP) have fallen the least with XLU even moving modestly higher. Health Care (XLV) and Technology (XLK) have also held up relatively well considering the other sectors have all fallen over 2%. While XLK has yet to move into oversold territory, XLV is sitting at extremely oversold levels on these declines. In total, seven of the eleven sectors are oversold; five of which to an extreme degree. Only XLU and XLRE are above their 50-DMA’s. In fact, XLRE is sitting pretty extended relative to other sectors at 1% above its 50-day moving average. Start a two-week free trial to Bespoke Institutional to access our Trend Analyzer and much more.