With no changes to any of the Invesco models this week, we look at the Invesco S&P Smallcap Momentum ETF (XSMO).
There are no changes to any of the Invesco models this week. US large cap still holds the top two spots in the DALI size & style rankings, however, in the Asset Class Group Scores, which tend to change more quickly, the All US Small Cap group, with an average score of 4.15, now leads the All US Large Cap group, which has an average score of 3.93. Investors looking to take advantage of the recent strength in small caps may wish to consider the Invesco S&P Smallcap Momentum ETF (XSMO).
XSMO currently has a strong 5.39 fund score, which is 1.25 points better than the average for all small cap funds, and a positive 2.20 score direction. The fund reversed up into a column of Xs on its market RS chart in late January, demonstrating near-term relative strength against the market and has been on a market RS buy signal since May 2024.
On its default chart, XSMO has completed three consecutive buy signals and reached a new all-time high earlier this month. While the fund trades near its all-time high, it remains in actionable territory on its 10-week trading band with a weekly overbought/oversold (OBOS) reading of 56%. Initial support can be found at $76, with additional support afforded in the $69 - $72 range. Year-to-date (through 2/13), XMSO has gained 10.65% on a price return basis while the Russell 2000 (RUT) is up 6.64%.
