Selling pressure has moved from technology to the financials as exceptionally overbought ETFs like the ^UYG^ pulled back by well over 1% to finish the week. By contrast, the ^ROM^ gained more than 1%, rallying from recent oversold lows as mentioned in yesterday’s 7 ETFs You Need to Know.
Around the world, the exchange-traded fund picture was more mixed with some funds rallying while others, like the ^FXI^ remained under pressure, closing lower for a second consecutive session.
Here are 7 ETFs You Need to Know for Monday.
Among the top ETF PowerRatings funds for Monday are the ^XLP^, which earned an upgrade from 7 to 9 late in trading on Friday, and the ^VNQ^, which retreated after a short-term bounce into overbought territory on Thursday. VNQ earned an upgrade to 8 late in the trading day.
The strongest sector in the market was clearly the industrials. The ^XLI^ has closed in overbought territory above the 200-day moving average for five consecutive trading days.
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The most oversold ETF in our high probability database right now? After the Consumer Select Sector SPDRS ETF mentioned above, the next most oversold is the ^IYZ^, which closed lower for a third consecutive trading session.
On the other end of the scale, commodity-related exchange-traded funds continue to be exceptionally overbought. An example of this is the ^MOO^, which has closed in overbought territory for five days in a row.
Among commodity-related ETFs, significant dollar weakness meant more upside for the ^SLV^, which closed up more than 1% on Friday. This weakness in the U.S. Dollar was no surprise to high probability traders who noted that the ^UDN^ had climbed into oversold territory above the 200-day moving average Thursday and rallied strongly on Friday.