IVW outperforms major US indixes

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As we see in the blue box, IVW – the iShares S&P 500 Growth ETF – moved recently below its 50-day exponential moving average for three sessions. By the way, the lower Bollinger Band ran along the moving average in this three-day period.

Then, the bulls reacted decisively and pushed price close to its 10- and 20- ay exponential moving average. This kind of price action tells us that the possibility that the temporary retracement has ended and the uptrend has resumed, is bigger.

MACD, our momentum indicator also tells us that we are entering a bullish territory, which will be verified if MACD crosses over its signal line.

Finally, IVW’s Relative Strength is moving up and above its 20-day exponential moving average, which is the case for the bigger part since early February.