TradingMarkets 7 ETFs You Need to Know for Thursday

Overbought conditions in many index and sector-based exchange-traded funds have resulted in a dramatic sell-off, with energy- and emerging markets related ETFs among those losing the most ground. The aggressive selling has once again proved a boon for short and leveraged short ETFs, which are rallying after two days of increasingly oversold conditions.

Here are 7 ETFs You Need to Know for Thursday.

Among those funds responding positively to two days oversold conditions are the ProShares UltraShort Oil & Gas ETF, DUG (DUG | Quote | Chart | News | PowerRating), which soared more than 22% on Wednesday, and the ProShares UltraShort S&P 500 Index exchange-traded fund, SDS (SDS | Quote | Chart | News | PowerRating), which was up more than 11%.

Gold shares provided little relief for traders and investors, as the Market Vectors Gold Miners ETF, GDX (GDX | Quote | Chart | News | PowerRating), slid by more than 6% to close at an all-time low.

Although never becoming extremely overbought, the Oil Service HOLDRS, OIH (OIH | Quote | Chart | News | PowerRating), nevertheless sold off aggressively on Wednesday, losing more than 12% and closing back below its 5-day moving average.

One day of overbought conditions below the 200-day moving average was all it took to bring out the sellers in the ProShares Ultra Financials ETF, UYG (UYG | Quote | Chart | News | PowerRating), which fell by more than 9% on the day.

Tuesday's intraday reversal in the iShares Russell 2000 Trust ETF, IWM (IWM | Quote | Chart | News | PowerRating), provided traders with a hint of what was to come. IWM lost more than 5% on Wednesday, closing at its lowest levels in a week.

The India Fund, IFN (IFN | Quote | Chart | News | PowerRating), was one among many emerging markets ETFs experiencing its second day of selling. Down more than 13% on Wednesday, IFN made an all-time closing low.

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