This morning, on the back of multiple days of declines, there are two notable changes in our Trend Analyzer tool. For starters, as we have repeatedly made note of in the past week, there have been fewer and fewer major index ETFs in downtrends. In spite of recent declines, a few more moved out of their downtrends yesterday. That leaves us with only the Micro-Cap ETF (IWC) still in a downtrend. Every other index ETF has left their downtrend and is currently trending sideways.
The other major shift is the vast majority of these ETFs have now moved out of overbought territory and into neutral as a result of selling pressure over the past few sessions. Currently, there are only two ETFs—the S&P 100 (OEF) and Nasdaq (QQQ)—that remain overbought. The reason for this being these two have been the best performers over the past week. Given the current market wide sell-off over the past several days, being the best performers does not necessarily mean they are in the green. Both are lower than five days prior but to a much lesser of an extent than their peers. Not a single index ETF has managed to see gains over the past week with losses ranging from very small (0.02% for QQQ) to over 3.5% (IWC). Small caps have really been hit the hardest during this pullback.