Despite positive price action last week with most major index ETFs (other than small caps) up over 1.5% from five days ago, the longer-term trends have worsened in our Trend Analyzer. Over the past few months, fewer and fewer major index ETFs have held onto their long term uptrends. Headed into Friday, ETFs tracking the S&P 500 (SPY, VOO, IVV) had been the only ones left in uptrends, but today they have joined their peers and are trending sideways. Fortunately, only the Micro-Caps ETF (IWC) is in a downtrend. More near term, each of the major index ETFs has experienced mean reversion over the past couple of weeks as each one has now exited oversold territory. Large caps have also retaken their 50-DMAs and are now approaching overbought territory in the process.
Last week, stocks finally managed to break out of the range that they had been in since the first days of August. Large caps like the Dow (DIA) saw the most distinct breakout above this range in addition to a move back above their 50-DMAs. On the other hand, although mid-caps like the Core S&P Mid-Cap ETF (IJH) and the S&P MidCap400 ETF (MDY) also managed to breakout above the short term downtrends that were established in August and their 50-DMAs, they did not hold above their 50-DMAs on Friday. The small-cap Russell 2000 (IWM) looks more or less the same, but rather than the 50-DMA, IWM failed to hold above its longer term 200-DMA. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer, Chart Scanner, and much more.