SPY and QQQ Get the Headlines, but Small and Mid Caps are Leading

SPY and QQQ Get the Headlines, but Small and Mid Caps are Leading

Welcome to the Chart Fix!

SPY and QQQ may be grabbing the headlines, but don’t be fooled because small-caps and mid-caps are leading the way. Smalls and mids held up better during the March decline and they are trading near new highs after the April breakouts. Today’s report will compare performance for the major index ETFs and analyze the Russell 2000 ETF in detail. Read until the end to see our offer for a Master ETF ChartList to jump start your analysis process.

Trend Signals, Reports and Master ChartList

Small-caps and Mid-caps are Outperforming SPY and QQQ

The summary table below shows performance for SPY, QQQ and seven other major index ETFs. This table is sorted by the SMA(200) column, which shows the percentage above the 200-day SMA. The Russell Microcap ETF (IWC) is leading because it is 11.91% above its 200-day. Small-caps are are next with the Russell 2000 ETF (IWM) and S&P SmallCap 600 SPDR (IJR) over 10% above their 200-day SMAs. SPY and QQQ, in contrast, are less than 5% above their 200-day SMAs.

The %Chg column shows the year-to-date percentage gain/loss for each ETF. Again, the small and mid cap ETFs show much bigger gains. Note that the Nasdaq 100 Equal-Weight ETF (QQEW) is down around 5% year-to-date.

See our report testing Zweig Breadth Thrusts based on S&P 500 and S&P 1500 stocks. ZBT signals are used for entry and a trend signal for exits. 

IWM Follows Through on Breakout Surge

The Russell 2000 ETF (IWM) held up better than SPY and QQQ in March. On the chart below, IWM fell to its 200-day SMA and closed below this key average for one day. It was back above the very next day. SPY and QQQ, in contrast, clearly broke their 200-day SMAs and their November lows. Chartists can use the November lows to gauge relative chart performance. ETFs that held above their November lows performed much better in March. IWM held above its November low and showed relative chart strength.

Not only did IWM show relative strength, a bullish continuation pattern also formed on the price chart. TrendInvestorPro featured this setup on April 7th. The falling wedge is typical for a correction within an uptrend. As long as the bigger trend is up, a pullback is considered a correction within the uptrend. %B became oversold in early March, but broad market weakness weighed as the correction extended. This downswing reversed with the gap-breakout on April 8th. Strong follow through further validates the breakout.

It is now important that the breakout holds. A close below 250 would fill the gap, negate the breakout and call for a re-evaluation.

Get the Analytical Edge with Our Master ETF ChartList

A robust analysis process starts with an organized and comprehensive ChartList. This is where we run scans, view performance tables, browse CandleGlance charts and perform detailed chart analysis. TrendInvestorPro subscribers get access to our Master ETF Chartlist, which has over 290 ETFs organized in a logical top-down manner. Sections include broad index ETFs, sectors, industry groups, bonds, commodities, crypto, currencies and alts. Below is a screen shot showing some ETFs and groups covered.

Click here to take a trial to TrendInvestorPro and get this list. Note that you must be a StockCharts member with a Extra subscription to receive the ChartList.

Trend Signals, Reports and Master ChartList

Large-Cap Dominoes Fall – Finance Joins the Fray – Money Moves into Utes and Bonds

The dominoes continue to fall within the large-cap tech universe as QQQ breaks a benchmark low. Weakness is spreading into the broader market as finance (XLF) plunges and SPY tests first support. Meanwhile, money is moving into safe-haven bonds and defensive utilities. $SPY $RSP $QQQ $MAGS $XLK $XLF $XLU $IEF

Large-Cap Dominoes Fall – Finance Joins the Fray – Money Moves into Utes and Bonds Read More »

Using Trend Signals and Oversold Conditions to Get a Jump on the Breakout

Looking to get a jump on a breakout? During long-term uptrends, short-term oversold conditions present opportunities to trade in the direction prevailing uptrend, which is the dominant force at work. Today we will show how to identify the long-term uptrend using the Trend Composite and find oversold setups using the Momentum Composite.

Using Trend Signals and Oversold Conditions to Get a Jump on the Breakout Read More »

Breadth not Ideal, but Net Bullish – Homebuilder Breakout could Bode well for 2026

Market breadth is not very strong, but it is strong enough to support a bull market. At the very least, key breadth metrics are not net bearish. Today’s Chart Fix shows how to quantify signals using new highs, new lows and the percentage of stocks with golden crosses. We then dissect the breakout in the Homebuilders ETF, which could hold the key to broadening leadership in 2026.

Breadth not Ideal, but Net Bullish – Homebuilder Breakout could Bode well for 2026 Read More »

3-step Process to Increase your Success Rate – Trend, Relative Performance and Chart Setup

Successful entries are rarely accidents. The best trades come from a repeatable process that starts with long term trend identification, a relative performance assessment and a robust chart setup. Use this three-step framework to filter names, focus on leaders, and time entries with favorable reward to risk ratios.

3-step Process to Increase your Success Rate – Trend, Relative Performance and Chart Setup Read More »

Discretionary Lags – Speculative Names Thrown Out – Trend Signals within MAG7 & Utilities

The stock market moved from offense to defense over the last few weeks. Speculative tech names led the market into October, but defensive names took over in November. Healthcare, consumer staples and gold are holding strong, while the ARK Innovation ETF breaks support and Microsoft

Discretionary Lags – Speculative Names Thrown Out – Trend Signals within MAG7 & Utilities Read More »

Defensive Sector Stands Strong as Economically Sensitive Sector Breaks Down

Stock market performance remains mixed with a high percentage of S&P 500 stocks trading below their 200-day SMAs. This number has yet to exceed 50%, but should be watched because the Consumer Discretionary and Technology sectors show deterioration. Despite a mixed market, the Healthcare sector is rising above the

Defensive Sector Stands Strong as Economically Sensitive Sector Breaks Down Read More »

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