High Probability ETF Trading: 7 ETFs You Need to Know for Friday (URE, SPY, SSO, TYH, VGK, IEV, UNG)
Extreme oversold conditions in a diverse range of ETF markets led to a strong rally on Thursday, lifting equity index and sector ETFs higher going into the final trading day of the week.
Precious metals ETFs were also higher heading into trading on Friday. Up more than 1% after closing lower for four days in a row were shares of the ^GLD^ and the ^GDX^.
Here are 7 ETFs You Need to Know for Friday.
Which exchange-traded funds (ETFs) are the most oversold after Thursday’s strong move higher? The ^URE^ (below) closed at the lower end of neutral territory on Thursday after an intraday reversal that still left the fund up more than 1% on the day.
Four consecutive closes in oversold territory above the 200-day moving average was enough to send exchange-traded funds like the ^SPY^ higher by more than 1% ahead of trading on Friday. Up more than 3% was the ^SSO^ (below).
Like the SPY, SSO had closed in oversold terrritory for four days in a row before Thursday’s bounce higher.
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After five days in oversold territory, shares of the ^TYH^ (below) rallied by 5% on Thursday.
Before the sell-off earlier in the week, technology had been one of the more overbought sectors in the market.
Typical of the gains in many country funds were the rallies in European ETFs like the ^VGK^ and the ^IEV^, both up more than 2%.
The most overbought exchange-traded fund trading below the 200-day moving average ahead of trading on Friday is the ^UNG^. Shares of UNG have closed higher for three out of the past four trading days.
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David Penn is Editor-in-Chief at TradingMarkets.com.