As shown in our Trend Analyzer snapshot below, all six of the most closely watched US equity index ETFs are now trading in oversold territory. The dot in the “trading range” section of the snapshot shows where each ETF is currently trading within its range relative to its 50-day moving average. A move into the green shading of the chart represents oversold territory, which is more than one standard deviation below the ETF’s 50-day moving average. The dark green shading represents extreme oversold territory, which is between two and three standard deviations below the 50-DMA. The Russell 2,000 (IWM) small-cap ETF is the most oversold, while the remaining five are all in roughly the same position just above extreme territory.
Our Chart Scanner tool allows you to dive deeper into each ETF after getting an overhead view with our Trend Analyzer. The blue line in each chart represents each ETF’s 50-day moving average, while the purple line represents its 200-day moving average. You can also customize your settings to change the display of the moving averages and their colors. The Russell 2,000 (IWM) is at this point the only one that has traded below its 200-DMA, but the Dow (DIA) is the next closest to testing this key long-term support level. All of the six have rolled over from recent highs and have damaged whatever uptrends were in place. The negative technical set-up will continue until the 50-DMAs are re-taken once again. Start a 2-week free trial to Bespoke Institutional for full access to our research and interactive tools.