Over the past several weeks we have seen the S&P 500 (SPY) and Dow (DIA) push lower while the higher beta indexes Nasdaq 100 (QQQ) and Russell 2000 (IWM).
As you can see in the table below both ETFs are now in a short-term overbought state.
There are a few ways I might play the overbought readings in IWM and QQQ. (more…)