50-DMAs Couldn’t Hold

Worries about banks left major US index ETFs across the market cap spectrum back below their 50-day moving averages. The uptrend channels that have been formed over the last six months are also getting tested with this week’s move lower. You can see the current set-ups in the snapshot from our Chart Scanner tool below.

(Click on image to enlarge)

Looking at our Trend Analyzer, every sector ETF except for Technology has now moved back below its 50-day moving average. Six of eleven sectors are actually oversold (>1 standard deviation below 50-DMA), with Financials (XLF) and Health Care (XLV) at “extreme oversold” levels. XLF had been up more than 8% on the year about a month ago, but it’s now down 1.93% YTD.

Technology (XLK) and Utilities (XLU) are the only two sectors up over the last week. Interestingly, Utilities (XLU) has been one of the worst-performing sectors so far this year, while Tech has been the best.

(Click on image to enlarge)

With Financials seeing such a sharp decline this week, below is a snapshot of various banks and brokers in the sector with the ones highlighted in red all now trading at least 5% below their 50-DMA. As shown, Charles Schwab (SCHW) is down the most over the last week with a decline of 12.6%, which has left it 16.4% below its 50-DMA and down nearly 20% on the year. Other names like Bank of America (BAC), JP Morgan (JPM), and Raymond James (RJF) are in extreme oversold territory as well. Of the major banks and brokers listed, Goldman Sachs (GS) has actually held up the best over the last week with a decline of just 2%.  

(Click on image to enlarge)

More By This Author:

Bearish Sentiment Remains
Seasonal Headwinds Dying Down For Claims
Intraday Action Continues To Trump After Hours

Disclaimer: Bespoke Investment Group, LLC believes all information contained in this report to be accurate, but we do not guarantee its accuracy. None of the information in this report or any ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.