FYI: As we mentioned in a series of tweets earlier this morning, our Trend Analyzer one week ago looked a bit different than it does now. Last week, before the FOMC rate decision and the escalation of tariff tensions sent markets into a tailspin, almost all of the major US indices were overbought and had distanced themselves above their 50-DMAs. Now, in the Trend Analyzer, the reverse is true as every major index ETF has crashed through their respective 50-days, leaving ten of the fourteen oversold. Leading the way to the downside, the Micro-Cap (IWC) ETF, is about as oversold as it gets as it has fallen over 3 standard deviations below the 50-DMA. With the most recent move lower, IWC is now showing a downtrend as well; the only one to show this. The four that are not oversold are just barely neutral and it would take only a little more downside for them to join the others. Ironically, one of these is the Nasdaq 100 (QQQ). While not by any significant degree, QQQ is just above oversold levels even after a 7.14% decline over the past week; the most of any major index ETF. The Nasdaq 100 has fallen more sharply than its peers as all of the others have seen declines of somewhere between 4.75% and just over 6% in that same time frame.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/trend-analyzer-8-6-19-what-a-difference-one-week-makes
