Headed into the end of the week, the overbought/oversold picture of the major index ETFs looks similar to yesterday. Each one remains below their 50-DMA as the majority are also in neutral territory. The only two outliers are the Micro-Cap ETF (IWC) and Russell 2000 (IWM). IWM managed to briefly push out of oversold territory earlier this week but yesterday’s declines brought it back below one standard deviation from its 50-DMA. Each of the small and mid-cap ETFs are similarly teetering between oversold and neutral despite having risen the most this week as a result of a bounce from more extreme oversold levels. Meanwhile, large caps are more firmly in neutral territory. The Nasdaq (QQQ) is closest to its 50-DMA, but yesterday once again failed to close above its 50-DMA.
After their massive rip higher over the past few months, precious metals have begun to see some mean reversion after reaching extreme overbought levels last week. While still overbought, each one is now down roughly 1% or more over the past five days. Oil (USO), on the other hand, has seen a solid move upwards this week but has run up to resistance and is now looking to erase all of these gains and then some this morning. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.