In this week's market analysis, we're diving into the performance of Invesco QQQ Trust (QQQ) and the iShares U.S. Home Construction ETF (ITB) over the past five years.
**Orange Line**: ITB (iShares U.S. Home Construction ETF) **Candlestick Chart**: QQQ (Invesco QQQ Trust)
Here's what stands out:
1. **ITB vs. QQQ Performance**: - Over the last five years, ITB has shown impressive growth of 181.62%. - QQQ has also performed remarkably, with a gain of 138.88%.
2. **Relative Strength Index (RSI)**: - The upper RSI chart shows the RSI for QQQ, currently at 73.93, indicating an overbought condition. - The lower RSI chart displays the RSI for ITB, at 57.39, suggesting it's in a more neutral zone.
3. **Trend Analysis**: - Both ETFs experienced significant volatility during the COVID-19 pandemic, as seen in early 2020. - Since then, QQQ has steadily recovered and reached new highs, while ITB has shown stronger but more volatile growth.
4. **Recent Movements**: - Both ETFs have shown positive momentum recently, with ITB experiencing a sharper upward trajectory.
**Key Takeaways**: - ITB has outpaced QQQ in percentage growth over the past five years. - RSI indicators suggest that QQQ might be in an overbought zone, while ITB remains in a healthier range.
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