Selling in technology has finally caught up with the Nasdaq 100, sending the ^QQQ^ to the edge of oversold territory above the 200-day moving average. News of the ^TXI^ acquisition of ^NSM^ after the close on Monday will likely be the dominant influence on trading in the QQQ and the tech sector on Tuesday.
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Here are 7 ETFs You Need to Know for Tuesday.
In addition to the selling in semiconductors (see our note on the SMH in yesterday’s 7 ETFs You Need to Know), technology more broadly has been in pullback mode. Closing lower for a third day in a row was the ^TYH^ (below).
Shares of TYH pulled back by well over 1% on Monday alone to send the fund to its most oversold levels in more than two weeks.
Also down three in a row is the ^ROM^.
Breaking out to new highs ahead of trading on Tuesday was the ^AGQ^ (below).
Up more than 4%, shares of AGQ have closed higher for the past four days in a row.
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A two-day pullback in the ^PBW^ has taken the stock to just inside of oversold territory above the 200-day.
Junk bond ETFs noted in yesterday’s 7 ETFs You Need to Know rallied into strength on Monday. Both the ^JNK^ and the ^HYG^ (below) bounced back from two-day pullbacks to close above their respective 5-day moving averages.
Shares of HYG pulled back from extremely overbought territory with a 2-period RSI of more than 97 to extremely oversold territory with a 2-period RSI of less than 7 in three days.
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David Penn is Editor in Chief of TradingMarkets.com.