Heavy Selling in China, Emerging Markets Reaches Oversold Extremes: 7 ETFs You Need to Know for Thursday

Exceptionally oversold conditions have brought a sizable number of exchange-traded funds (ETFs) significantly lower over the past few days. While the selling began initially with energy shares, more and more ETFs have pulled back into oversold territory – including country fund and sectors like technology.

In today’s report, we’ll take a look at the most extremely oversold funds, the ones with the biggest historical edges over the next few days.

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Here are 7 ETFs You Need to Know for Thursday. 

Despite the strong selling in energies at the beginning of the week, the most oversold funds in our database are largely country funds.

The most oversold fund, for example, is the ^FXI^. FXI has closed lower for six days in a row and has a 2-period RSI of less than 1.00.

Also extremely oversold above the 200-day are the ^EWA^ and the ^EWS^ (below).

EWS chart

Both funds have 2-period RSIs of 2.00 or less heading into trading on Thursday.

Emerging markets as a whole have come under significant selling this week. Down two days in a row and four out of the past six is the ^EEM^.

In addition to country funds, traders and investors have been selling precious metals ETFs, as well. Down three in a row is the ^GLD^, while the ^SLV^ (below) has closed lower for four consecutive trading days.

SLV chart

SLV has closed in oversold territory for the past three days in a row.

The ^FAS^ (below) has held up exceptionally well amidst the strong selling of the week.

FAS chart

The fund has closed lower for three out of the past four trading days, but has not yet retreated to oversold territory.

David Penn is Editor in Chief of TradingMarkets.com