The daily chart shows price at a pivotal point for small caps. Currently just trading over a flattening 50 day moving average and up against the recent down trend line while filling the gap from Wednesdays selloff. Volume has also been light into this week while everyone kind of waits for direction. The RSI line shows a slight break of the down trend line ahead of price so we will keep an eye out to see if that could be a directional tell.
The weekly chart shows where buyers stepped in this week. Its basically right around $134 where it broke out around the end of 2016 and really has just consolidated for 5 months between 132 and 142. Each higher high has been met with sellers so its just not ready for its next move but a nice trading range is established for now.
Last week we broke down the top 24 % holdings for the IWM ETF and noticed that the average score of each was above 50% which we like to see if anymore upside is left. The group as a whole is still maintaining. Actually the top 10 holdings secured an average score of 63% so that’s still pretty healthy for now. The chart of the 24 is shown just below
Next I like to see where those 24 are today and maybe see if we can notice any strength occurring behind the scenes and maybe ahead of price.
Here is a list of the 24 sorted by weight in the IWM ETF
|Advanced Micro Devices Inc||AMD||0.44||10.88|
|The Chemours Co||CC||0.43||41.61|
|Take-Two Interactive Software Inc||TTWO||0.36||76.67|
|XPO Logistics Inc||XPO||0.28||53.18|
|New Residential Investment Corp||NRZ||0.26||16.45|
|Universal Display Corp||OLED||0.26||113.6|
|Aspen Technology Inc||AZPN||0.25||59.89|
|Webster Financial Corp||WBS||0.25||49.76|
|Teledyne Technologies Inc||TDY||0.24||128.58|
|Prosperity Bancshares Inc||PB||0.23||64.85|
|F N B Corp||FNB||0.23||13.65|
|MKS Instruments Inc||MKSI||0.23||79.5|
|Bank of the Ozarks Inc||OZRK||0.22||46.76|
|WGL Holdings Inc||WGL||0.22||83.05|
|Parexel International Corp||PRXL||0.22||79.69|
Today’ s run shows the following statistics
The 24 average has moved up to 57% (from 52)
The top 10 has moved up to 71% (from 63)
The IWM has been up 4 days in a row, today is still up in the air but could be 5 if any push after 3 pm.
Names like the below are really keeping small caps afloat
We will continue to monitor the underneath strength of small caps but as of today we don’t see much weakness overall as a group and support is/can still be bought.
Lastly we have a snapshot of the IWM as an ETF and a look at its technicals. Its currently holding 58% so its just above average of the 24 weighted with all indicator averages currently on a buy signal