The major US indices initially headed into Friday looking to close out the week higher, but a series of tweets from the President sent stocks into a tailspin leading the indices to finish down on the week. These losses led the major index ETFs in our Trend Analyzer to finish the week solidly in oversold territory. Small and Mid-caps fell even more dramatically and are now over 2 standard deviations below their 50-days.
Taking a look across the chart patterns of these same ETFs in our Chart Scanner tool, each one has been range-bound over the past month after falling off of prior highs. Large caps have been trading between their 50 and 200-day moving averages. Small and mid-caps, on the other hand, have fallen below both of these moving averages. Furthermore, small-caps came the closest to falling out of this range on the steep declines on Friday. For example, the Micro-Cap ETF (IWC) has not taken out the intraday and range low of $84.58 from August 15th, but Friday did mark the lowest close of this period at $84.72. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer, Chart Scanner, and much more.