Coming off of the Dow and S&P 500 both hitting all-time highs during yesterday’s session, our Trend Analyzer is showing a sea of green. Yesterday we highlighted several of these ETFs as being down versus a week ago. Today, every one of the fourteen major US Index ETFs are higher than they were heading into last Friday. Additionally, eleven are currently overbought, three are neutral, and none are oversold.
This week, there has been a recurring theme in our Trend Analyzer that while most ETFs have been overbought, it was not by much. This is no longer the case today. Many of the ETFs are considerably more overbought than before with some nearing extreme overbought levels. Two that have neutral readings—Core S&P Small-Cap (IJR) and the Russell 2000 (IWM)—are on the cusp of moving into overbought territory. Meanwhile, the Micro-Cap ETF (IWC) has traded below its 50-DMA all week but has finally moved above. The Dow (DIA) is flexing its muscles from yesterday’s gains with a gain of 2.01% on the week (double the next highest) and is the most overbought ETF up 4.15% from its 50-DMA.
Finally, as we discussed yesterday in our Bespoke Sector Snapshot, the Financials and Materials sectors have recently lagged, but that hasn’t been the case this week. Both Materials (XLB) and Financials (XLF) have experienced the largest gains of the sector ETFs over the past week moving well into overbought territory.