The major domestic equity ETFs continue to trade in overbought territory above the 200-day moving average. This includes the ^SPY^, the ^IWM^ and the ^QQQQ^, even though the latter was unchanged on Friday. Volatility remains exceptionally low, with the ^VXX^ closing at a new low to end the week.
The enduring strength in sectors like financials and technology has helped leveraged ETFs like the ^FAZ^ and ^SSG^ pull back to exceptionally oversold levels.
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Shares of the ^IBB^ closed lower for a second consecutive trading day on Friday. IBB is now in oversold territory above the 200-day moving average.
The two most oversold country funds going into trading on Monday are the ^EWP^, which closed in oversold territory on Friday, and the ^EWD^ (below).
Shares of EWD have yet to close in oversold territory above the 200-day moving average. But if the EWD has another selling day like it did on Friday when it pulled back by more than 2%, the ETF could easily be in oversold territory by mid-week if not sooner.
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Among sector ETFs, the ^PPH^ (below) has pulled back into oversold territory above the 200-day.
PPH had closed higher for four days in a row before Friday’s pullback.
There is no more oversold asset class than bonds right now, with a wide number of bond ETFs closing in oversold territory above the 200-day moving average going into Monday’s trading. This includes the ^TIP^, which edged lower on Friday.
Pulling back toward oversold levels on Friday was the ^UDN^ (below).
UDN was oversold above the 200-day as recently as late October. Then, shares rebounded from a two-day pullback to rally more than 2% over the next five days.
Also pulling back to near oversold territory above the 200-day moving average on Friday were shares of the ^XLV^. XLV closed lower after gaining for four consecutive trading days.
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David Penn is Editor-in-Chief at TradingMarkets.com.