There are no changes to any of the iShares models this week. We have discussed several times recently the resurgence of small cap domestic equities, which have outperformed their large cap counterparts over the last few months. Earlier this week, the iShares S&P Smallcap 600 Index Fund IJR reached a new all-time high at $91, eclipsing the high it reached in 2018. IJR has a strong 4.23 fund score and a positive 2.65 score direction. On its default chart, the fund has given four consecutive buy signals. Year-to-date (through 12/16) IJR has produced a total return of 9.98%; the fund currently yields 1.4%. IJR currently sits in heavily-overbought territory with a weekly overbought/oversold (OBOS) reading of 118%, so those interested in adding exposure may wish to do so on a pullback. IJR has most recently found support at $85, with further support at $79.

This section of the report categorizes select iShares Fixed Income and Currency ETPs by their respective fund groups. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time with an "average level" to give us a general picture of whether the iShare ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong market ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. 

Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell. The Distribution Curve below displays those ETFs with positive RS in uppercase letters and those ETFs with poor RS versus the market in lowercase letters. As well, those ETFs that are on a Point & Figure Buy signal appear in Green letters, while those on Sell signals can appear in Red letters. Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

Average Level

77.20

										exi
										iyk
										eww
										ewc
										erus
										iak
										ige
										emif
										iev
										ewu	ewp
										ewk	epp
										gsg	eufn
										RXI	ewt
										ewm	epol
									IXN	ezu	ewz
									ixp	ieo	ign
									ewd	ICLN	ewa
									IYY	epu	indy
									IYJ	eis	IJR
								IHE	ech	ewn	ewj
								IGV	ITA	mxi	ewy
								iym	iyz	ixc	thd
								eza	IYC	tur	iez
							IXJ	IVV	IBB	ewq	ilf
							kxi	igf	ewg	ixg	IAI
					jxi		ihf	ewl	SOXX	IJH	eems
					ITB		SLV	ewh	iyg	ewi	ewo
					fxi	icf	iyt	enzl	iat	ews	wood
				idu	IAU	IHI	bkf	dvy	eem	efa	eido
<--100	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

This section of the report categorizes select iShares ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

Weekly Updates: No changes.