Several mid-cap exchange traded funds joined the new all-time club on Wednesday adding to what has been a solid run for the often overlooked group.
The $15.1 billion SPDR S&P MidCap 400 ETF (NYSEArca: MDY), which tracks the S&P MidCap 400 Index, was not one of the mid-cap funds hitting a new high Wednesday, but MDY is up 2.1% in the past month and now resides just 0.6% below its 52-week high.
At least one technician sees the possibility of more upside for the behemoth mid-cap ETF.
“Drilling down to the weekly chart time frame, we see the price action climbing above the $250 resistance level and the downtrend line last week. The price action is holding above $250, with the 50-day MA beginning to turn up,” says Deron Wagner of Morpheus Group of MDY.
Critical to MDY’s near-term fortunes will be the ETF’s ability to find support at its 10-day moving average in the event of any pullbacks.
“The daily chart shows the tight price action, with the past several sessions above the rising 10-day MA. Note that the 20-day EMA has crossed above the 50-day MA, and the 50-day MA is flattening out,” added Wagner. “We look for MDY to hold support at the rising 10-day MA and push to new highs.