The Dow Industrials SPDR (DIA) led the market this week with a new 52-week high on Friday. Not bad considering the Russell 2000 ETF (IWM) suffered its biggest weekly loss since early August. Overall, the up trends for the major index ETFs remain in place as they recorded new 52-week highs this week. The Russell 2000 ETF (IWM), S&P 500 ETF (SPY), S&P MidCap 400 SPDR (MDY) and Nasdaq 100 ETF (QQQQ) recorded their new highs at the beginning of the week, but peaked on Wednesday and were down for the week. Led the strength in IBM on Wednesday on General Electric on Friday, DIA finished the week on a strong note.
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Despite strength in Dow Industrials SPDR, the Russell 2000 ETF and the Consumer Discretionary SPDR have been relatively weak since mid December. The chart above shows the Price Relatives peaking in mid December. The IWM:DIA took a major hit this week and moved to its lowest level since late November. The XLY:DIA Price Relative has been working its way lower the last five weeks. The QQQQ:DIA Price Relative also took a hard hit this week. Even though DIA is doing its part, relative weakness in small-caps (IWM), the most economically sensitive sector (XLY) and large-techs (QQQQ) cast a shadow on this week’s rally.