A two-day pullback was enough to bring out buyers in both the ^SPY^ and the ^IWM^ ahead of trading on Thursday. Rebounds from one-day pullbacks in Asian exchange-traded funds, especially the ^EWH^ and the ^EWJ^, resulted in one-day gains of more than 1%.
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Many of the more conservative sectors – such as drugs, consumer staples and health care – were among those closing in oversold territory ahead of trading on Thursday. This was represented in part by pullbacks in the ^PPH^ and the ^XLP^ (below).
Shares of XLP have closed lower for four consecutive days. The ETF was last in oversold territory in late October, shortly before a rally during which XLP closed higher for five out of the following six trading days.
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Spain continues to represent one of the most oversold country fund markets, with the ^EWP^ closing down 1% on Wednesday. Down four days in a row, the last two in oversold territory above the 200-day, was the ^EWZ^ (below).
Also closing lower for four days in a row was the ^UDN^.
Buyers stepped in on Wednesday to lift shares of the ^GDXJ^ higher by more than 2% after pulling back by more than 5% on Tuesday.
GDXJ has not closed in oversold territory since mid-October. The stock is up more than 20% since then.
The continued selling in the ^DUG^ below the 200-day moving average is a reminder of how commodity-driven exchange-traded funds can often behave more like commodities than like equities.
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David Penn is Editor-in-Chief at TradingMarkets.com.