High Probability ETF Trading: 7 ETFs You Need to Know for Friday (EWY, EWW, VWO, XLK, QQQ, FXE, FAS)

With technology in the lead and buyers repeatedly able to bid markets off their lowest levels intraday, it is no surprise that overbought conditions have returned to the stock market. Among the most overbought ETFs heading into trading on Friday are emerging markets-related funds, including funds from both Asia and Latin America.

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Here are 7 ETFs You Need to Know for Friday.

Country funds are among the most overbought heading into the final trading day of the week. Both the ^EWY^ and the ^EWW^ have closed higher for six consecutive trading days.

Emerging markets regional funds like the ^VWO^ (below) are also especially overbought above the 200-day.

VWO chart

Shares of VWO closed at their highest level since mid-January on Thursday. The past two closes in the fund have been in overbought territory.

Technology, which helped bring the broader markets higher heading into Friday, are among the most overbought sectors. Closing in overbought territory above the 200-day moving average after gaining for three out of the past four trading days was the ^XLK^.

Closing at its highest level in ten days, the ^QQQ^ (below) gained well over 1% on Thursday to return to overbought territory above the 200-day.

QQQ chart

Thursday’s higher close was the first time the QQQ had closed in overbought territory since making its high for the year in mid-February.

The ^FXE^ resumed its uptrend on Thursday, bouncing higher after pulling back for the past two trading days.

Traders in the market for the ^FAS^ (below) managed to bring the fund up from its intraday lows for a second session in a row.

FAS chart

Shares of FAS gained more than 1% to rally back into neutral territory heading into Friday’s open.

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David Penn is Editor in Chief of TradingMarkets.com