TradingMarkets 7 ETFs You Need to Know for Wednesday

One day of overbought conditions below the 200-day moving average have been all that was required to bring out sellers in many long and leveraged long exchange-traded funds on Turnaround Tuesday. The trading led to many ETFs opening up above Monday’s levels, but reversing over the course of the trading day to finish lower.

Here are 7 ETFs You Need to Know for Wednesday.

Although higher on a close-to-close basis by more than 4% on Tuesday and still overbought, the Select Financial Sector SPDRS, XLF
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were nevertheless were down on the day.

The iShares MSCI Emerging Markets Index ETF, EEM
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, lost more than 6% in trading on Tuesday, retracing most though not all of Monday’s gains.

Basic materials stocks were on the retreat on Tuesday, as seen by the more than 5% loss in the Select Basic Materials Sector SPDRS, XLB
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Gaining more than 6% on the day, the ProShares UltraShort QQQ exchange-traded fund, QID
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is both oversold and trading above its 200-day moving average.

Opening near its 200-day moving average, the Biotechnology HOLDRS, BBH
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, reversed to close lower on Tuesday. The ETF has traded below its 200-day moving average for a little over a week.

And the downward trend in the United States Oil Fund, USO
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continued on Tuesday with shares of the fund losing more than 3% on the day. USO has been trading below its 5- and 200-day moving averages since early September.

A strong start in the Select Retail Sector SPDRS, XRT
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on Tuesday faded quickly as the ETF closed lower by almost 4% – completely retracing Monday’s gains.

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