Major US index ETFs have seen a major bounce off of oversold levels over the last week. You can see the big jump in the snapshot from our Trend Analyzer tool below. Even with gains of 2-3% across the board over the last week, however, all of the ETFs shown remain below their 50-day moving averages. Bulls still have work to do to put the onus back on the bears.
As stocks sit higher versus last week, defensives are once again overbought with Utilities (XLU) at extreme levels and Real Estate (XLRE) not far behind. Along with Technology (XLK), these ETFs are the only ones that are currently above the 50-DMA. Meanwhile, more cyclical sectors like Energy (XLE), Financials (XLF), and Materials (XLB) all remain oversold. Granted, as with the small and mid-caps above, these three ETFs in addition to Industrials (XLI) and Health Care (XLV) were sitting at extreme oversold levels this time last week. Start a two-week free trial to Bespoke Premium to gain access to our popular Trend Analyzer tool and much more.