High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (IBB, EWP, INP, QQQQ, QLD, SPY, SSO)

Profit-taking continued to creep into the market, as exchange-traded funds representing the S&P 500 and the Nasdaq 100 edged nearer to oversold territory above the 200-day moving average, while the main ETF representing the Russell 2000, the ^IWM^ actually pulled back to oversold territory above the 200-day.

Some of the sharper pullbacks on Wednesday came from emerging markets ETFs like the ^EWZ^ and the ^FXI^.

Here are 7 ETFs You Need to Know for Wednesday.

Going into trading on Wednesday, the most oversold sector in our database is the ^IBB^.

IBB has closed lower for four days in a row, with the past three closes well in oversold territory above the 200-day moving average.

In terms of country funds, the most oversold ahead of Wednesday’s open is the ^EWP^ (below).

EWP Chart

EWP has closed lower for three days in a row. All three closes have been in oversold territory above the 200-day.

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Not in oversold territory, but getting closer as of Tuesday’s close are shares of the ^INP^. INP has closed lower for two days in a row after climbing higher for six straight sessions.

A number of exchange-traded funds moved closer to oversold territory on Tuesday. This includes such widely-traded ETFs as the ^QQQQ^ and its leveraged counterpart, the ^QLD^ (below).

QLD Chart

QLD closed on Tuesday as its most oversold since the earliest days of October, shortly before a run of more than 22% over the next month.

Also moving closer to oversold territory above the 200-day moving average are the ^SPY^ (below).

SPY Chart

The SPY has closed lower for two days in a row, after closing higher for seven straight trading days. Also moving nearer to oversold territory above the 200-day is the leveraged counterpart to the SPY, the ^SSO^.

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David Penn is Editor-in-Chief at TradingMarkets.com.