With the ^SPY^, the ^QQQQ^ and the ^IWM^ all trading in neutral territory going into the first day of November, high probability traders may find themselves looking offshore to the more oversold markets of Asia for exchange-traded funds that have become oversold above the 200-day.
Gold and gold mining ETFs continue to make impressive gains following their pullbacks into oversold territory earlier this week. Up for two days in a row and more than 1% respectively on Friday were both the ^GLD^ and the ^GDX^.
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Real estate and REIT-related exchange-traded funds remain among the most oversold by sector heading into trading on Monday. This includes ETFs like the ^VNQ^ and the ^URE^ (below).
Shares of the URE have closed in oversold territory above the 200-day moving average for four consecutive trading days.
The ^FXI^ continues to be among the more oversold country funds in our database. The ETF has closed in oversold territory above the 200-day for the past three days in a row.
Closing in oversold territory above the 200-day for three out of the past four trading days on Friday were shares of the ^EWJ^ (below).
The EWJ nearly crossed below its 200-day moving average on an intraday basis last week. The ETF continues to trade above that long-term moving average, having spent most of the summer below it. EWJ has traded consistently above its 200-day since the beginning of October.
Another Asia-based country fund that has pulled back into oversold territory is the ^EWY^.
The ^UNG^ closed higher for a fifth consecutive trading day on Friday, and are likely to open overbought below the 200-day on Monday.
Back in oversold territory above the 200-day moving average as of Friday’s close were ^OEF^ (below).
The OEF closed in oversold territory last Wednesday and managed to climb out of oversold territory on Thursday. If there is follow-through trading to the downside on Monday, then Friday’s pullback will have been the first sign of a potential sell-off in the blue chips of the S&P 100.
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David Penn is Editor-in-Chief at TradingMarkets.com.