TradingMarkets 7 ETFs You Need to Know for Tuesday: SPY, EWM, EWT, GDX, XLK, XLI, XLP
Both the S&P 500 and the Russell 1000 (basis the ^IWM^) were among the better performing index equity ETFs on Monday. Both markets are likely to open in overbought territory Tuesday morning.
Around the globe, the ^EWZ^ have pulled back for three days in a row above the 200-day moving average, while the ^FXI^ continues to climb higher into overbought territory – also above the 200-day.
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Here are 7 ETFs You Need to Know for Tuesday.
Despite continued concerns over financial stocks, the ^SPY^ closed on Monday at its highest level since late April.
A pair of Asia country funds have pulled back toward levels from which they have historically reversed and moved to the upside in the short term. These exchange-traded funds are the ^EWT^ and the ^EWM^ (below).
Shares of EWM have closed lower for three days in a row ahead of trading on Tuesday. The ETF is at its most oversold level since the second half of September.
Also down for a third consecutive trading day were shares of the ^GDX^ (below).
Previous multiple-day pullbacks in GDX have anticipated short term bounces in the fund, with the three-day pullback in late September and the four-day pullback in late August among the more recent examples.
Closing higher for seven straight days, the ^XLK^ continues to be among the most overbought in our database of exchange-traded funds. XLK last closed in oversold territory above the 200-day on October 4th.
One sector that is experiencing increased selling is represented by the ^XLI^ (below).
XLI has closed lower for three days in a row, the first time the stock has pulled back for more than two days since rallying above the 200-day moving average in early September.
Although the bull market in technology stocks is garnering most of the attention from the financial media, conservative, safety stocks are also highly sought after by traders and investors who have pushed the ^XLP^ into overbought territory above the 200-day.
David Penn is Editor-in-Chief at TradingMarkets.com.