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 to give us a general picture of whether the Invesco ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength 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.
Average Level 8.29< - -100 -100 - -80 -80 - -60 -60 - -40 -40 - -20 -20 - 0 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 100 - > < - -100 -100 - -80 -80 - -60 -60 - -40 -40 - -20 -20 - 0 0 - 20 20 - 40 40 - 60 60 - 80 80 - 100 100 - >
Legend:
- UPPERCASE indicates that the RS chart is on a buy signal.
- lowercase indicates that the RS chart is in a sell signal.
- GREEN lettering indicates the ETFs trend chart is on a buy signal.
- RED lettering indicates the ETF is on a sell signal.
- Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.
