High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (XLU, EWJ, EWP, EZA, QQQQ, SRS, OIL)
The ^SPY^ closed higher for a fifth straight session – the last three in overbought territory above the 200-day. Strength in technology continues to buoy ETFs based on the Nasdaq 100, and specific technology ETFs like the ^XLK^ continue to makes gains.
Around the globe, international ETFs were mixed with the ^FXI^ moving lower and the ^EWZ^ advancing on the day.
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Here are 7 ETFs You Need to Know for Wednesday.
The most oversold exchange-traded fund (ETF) in our database? Among those ETFs trading above their 200-day moving average, the most oversold continues to be the ^XLU^, which closed lower for a fourth consecutive trading day on Tuesday.
Three country funds have also closed in oversold territory ahead of trading on Wednesday. These ETFs are the ^EWJ^, the ^EWP^, and the ^EZA^ (below).
EZA closed in oversold territory one week ago. That pullback led to a rally during which the ETF closed higher for four consecutive trading days.
No exchange-traded fund in our database is more oversold than the ^QQQQ^ (below).
The QQQQ have closed higher for five straight trading days ahead of trading on Wednesday. The QQQQ have not closed in oversold territory since the beginning of October.
Two exchange-traded funds have climbed into overbought territory below the 200-day moving average. One of these funds is a leveraged ETF, the ^SRS^, which rallied from oversold conditions below the 200-day to overbought conditions below the 200-day in a single session.
Also trading below its 200-day moving average and closing in overbought territory were shares of the ^OIL^ (below).
OIL had closed in overbought territory below the 200-day a little over one week ago and pulled back sharply the next day. OIL has traded below its 200-day moving average since early May.
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David Penn is Editor-in-Chief at TradingMarkets.com.