FYI: After finishing the session higher on Friday to cap off a strong June and first half of 2019, conditions have not necessarily become overly extended as the major indices work their way back all-time highs. Only half of the 14 the major index ETFs are overbought while the rest are neutral. These overbought ETFs are primarily comprised of large caps including the Dow (DIA), S&P 500 (SPY), and Russell 1000 (IWB). Meanwhile, distancing itself from some of its peers, the Nasdaq (QQQ) was the worst performer last week and has actually fallen out of overbought territory. Now sitting at neutral, QQQ is actually one of the least overbought ETFs of this group.
While large caps are mostly overbought, they are down versus one week ago, and as such, less extended than they were a week ago as well. The red dots and tails to the right in our Trend Analyzer tool show this slight pullback off of more overbought levels. On the other hand, small and mid-caps outperformed last week as each saw a gain of over 1%—save the Russell Mid Cap (IWR) which only rose 0.09% as it is also the most overbought index ETF. The Micro Cap (IWC) and Core S&P Small Cap (IJR) were the strongest performers rising over 1.7%, taking out the 50-DMA in the process. Despite the short term performance for these two, the long term trend is still sideways.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/trend-analyzer-7-1-19-strong-end-of-june-strong-start-to-july
