There are Many Oversold ETFs
Yesterday’s pullback was more than anticipated. I mentioned we were in rare air with overbought conditions coming into the day with over 100 S&P 500 stocks having 2-period RSI readings above 95. Such overbought conditions, especially after three-day weekends are hard to sustain and markets need to pause/pullback to get back to equilibrium.
Today there are many oversold ETFs including those in Europe, energy and metals. The US is neutral and it would be ideal to see at least another 1-2 days of selling in order to put it in an optimal position to make its next leg higher.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: EWG