Sellers were quick to take profits just as a number of exchange-traded funds had rallied into strength and were in – or headed toward – overbought territory above the 200-day moving average. And although the most aggressive selling was in commodities like energy and precious metals, sectors like financials also found themselves in pullback mode heading into trading on Thursday.
Here are 7 ETFs You Need to Know for Thursday.
Of the major equity index ETFs for the United States, the most oversold is the ^SPY^. The SPY was trading in overbought territory as recently as Tuesday and will arrive in oversold territory above the 200-day moving average on any significant follow-through selling on Thursday.
Country funds remain some of the most oversold ETFs in the stock market. Pulling back into oversold territory ahead of trading on Thursday are funds as diverse as the ^EWC^ and the ^EWJ^ (below).
Selling off by more than 1%, shares of EWJ are trading just above their 200-day moving average as of Wednesday’s close.
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Weakness in oil helped send oil stocks and oil ETFs lower on Wednesday. With the United States Oil Fund off by 4%, it is little surprise to see exchange-traded funds like the ^IYE^ and the ^XOP^ (below) trading in oversold territory.
Shares of XOP pulled back by more than 4% after rallying for three days in a row from recent oversold lows.
While both of the widely-traded gold mining ETFs have just closed below their 200-day moving averages, the ^SIL^ (below) is both oversold and above its 200-day.
SIL has closed lower for the past two days in a row and was down more than 6% on Wednesday.
Up more than 8% after a three-day pullback was the ^ERY^.
David Penn is Editor in Chief of TradingMarkets.com