Selling pressure has moved from technology to the financials as exceptionally overbought ETFs like the ProShares Ultra Financials ETF, UYG pulled back by well over 1% to finish the week. By contrast, the ProShares Ultra Technology ETF, ROM fared much better.
Semiconductors, as represented by exchange-traded funds like the Semiconductor HOLDRS ETF, SMH, joined the pullback in the broader technology sector on Thursday. Exchange-traded funds like the Technology Select Sector SPDRS ETF, XLK, noted in yesterday’s 7 ETFs You Need to Know, retreated deeper into oversold territory above the 200-day moving average.
On the final trading day of 2009, financials were the upside beneficiaries of what little trading there was. Rallying from short term oversold conditions above the 200-day moving average at week’s end were the ProShares Ultra Financials ETF, UYG and the Vanguard Financial ETF, VFH.