FYI: Even though the S&P 500 (SPY), Dow (DIA), and Nasdaq (QQQ) all rose over 1% yesterday, all of the major index ETFs in our Trend Analyzer are still oversold. Small and mid-cap indices are also at oversold levels, but both those have moved out of extreme oversold territory (2+ standard deviations below their 50-DMA). Small and mid-caps are also still in sideways trends while the Micro-Cap ETF (IWC) is actually in a downtrend. Longer-term trends for small and mid-caps have been weaker for some time now as large caps have managed to hold onto their uptrends. That was until now. Both the Nasdaq (QQQ) and Dow (DIA) are now showing sideways trends over the past six months. That is even though QQQ is up the most YTD on a nearly 20% gain.
Longer-term trends are also mixed for the individual sectors. Only six are in uptrends with another four are trending sideways. Meanwhile, the Energy ETF (XLE) is in a downtrend. On a shorter time horizon, XLE has gotten pretty extended to the downside sitting 8.45% below its 50-DMA (over 2 standard deviations away from the 50-day). Only the Materials Sector (XLB) is more oversold, but XLE is also the only one of these ETFs that is down YTD and YTD it is down 3.76%- the worst performer in the past week. XLB has seen similar declines in the past week. The only sector that is positive over the past week is Utilities (XLU) with a 40 bps gain and sitting over 2 standard deviations above its 50-DMA.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/trend-analyzer-8-27-19-large-caps-now-sideways
