High Probability ETF Trading: 7 ETFs You Need to Know for Friday (IEV, EZU, USO, OIL, UUP, SMH, XRT)

With Wednesday’s rally, bond exchange-traded funds such as the ^AGG^ and the ^BND^ are among the most oversold ETFs heading into trading on Friday.

Retail and technology continue to attract buying interest – and increasingly overbought conditions – while sellers remain active in country-based ETFs, especially those with exposure to Europe.

Note that U.S. stock markets will close at 1 p.m. Eastern today on Friday.

Here are 7 ETFs You Need to Know for Friday.

Up more than 1% and closing just outside of oversold territory ahead of Friday’s trading was the ^IEV^.

The most oversold exchange-traded funds trading above the 200-day moving average going into trading on Friday is the ^EZU^ (below)

EZU chart

Shares of EZU closed higher on Wednesday. But the fund has still closed in oversold territory for two days in a row.

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While bonds are the most oversold asset class in the short-term, commodities – particularly oil – are one of the most overbought asset classes right now. Up more than 3% on Wednesday were both the ^USO^ and the ^OIL^.

The dollar continues to advance, with the ^UUP^ (below) closing higher for a third consecutive trading day.

UUP chart

UUP has closed higher for three days in a row heading into Friday’s trading. The ETF was in oversold territory as recently as one week ago.

Up 2% and increasingly overbought above the 200-day moving average on Wednesday was the ^SMH^ (below).

SMH chart

The SMH has closed higher for five out of the past six trading days.

Retail continues to be the most overbought sector in the stock market. Closing higher for a sixth day in a row and up more than 1% ahead of trading on Friday were shares of the ^XRT^.

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David Penn is Editor in Chief of TradingMarkets.com