High Probability ETF Trading: 7 ETFs You Need to Know for Friday (EWH, RSX, XLI, XLE, EWS, IWM, IYT)

Buyers remain on the offensive when it comes to the ^QQQQ^, which has closed higher above the 200-day for seven straight trading days. The ^SPY^ bounded modestly higher after a one-day pullback put the ETF in oversold territory above the 200-day on an intraday basis.

Find out why more and more traders are turning to exchange-traded funds (ETFs) in the latest interview with TradingMarkets CEO and founder, Larry Connors.

Trading ETFs by Mastering Probabilities.

Available now for free at Investor’s Business Daily. Click the link above to access the interview.

Here are 7 ETFs You Need to Know for Friday.

Joining a number of other country funds in oversold territory above the 200-day moving average are exchange-traded funds like the ^EWH^ and the ^RSX^ (below).

RSX Chart

Two days ago, RSX had closed in overbought territory. But as selling has taken over the fund, the RSX has pulled back to close in oversold territory on both Wednesday and Thursday.

Among sectors that have experienced significant profit-taking in recent days, profit-taking that has helped the ETFs pull back to oversold territory above the 200-day, both the industrials, basis the ^XLI^ and the energies, basis the ^XLE^ (below).

XLE Chart

XLE has closed lower for two days in a row, the most recent close in oversold territory.

Another country fund from Asia has reached levels from which it has historically outperformed the average ETF in the short term. That ETF is the ^EWS^, which has closed in oversold territory for the past two days.

The latest major market equity index ETF to pullback to oversold levels is the ^IWM^. IWM has closed lower for the past three consecutive trading days.

IWM Chart

Little changed over the past two days, the ^IYT^ has closed in oversold territory above the 200-day for a second straight session.

With 7 professional, quantified trading strategies for trading both bull and bear markets, High Probability ETF Trading by Larry Connors and Cesar Alvarez was voted one of the top 10 trading books of 2009 by SFO Magazine. Click here to find out why.

David Penn is Editor-in-Chief at TradingMarkets.com.