Growing overbought conditions accompanied the stock market’s advance on Thursday. Leading the major equity index ETFs higher was the ^SPY^, up more than 1%.
With the stock market continuing to advance, the few exchange-traded funds in oversold territory above the 200-day moving average have tended to be bond ETFs. Typical of the pullback in bond ETF is the multi-day retreat in the ^BND^.
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Commodities and basic materials funds continue to attract buyers. Climbing higher into overbought territory ahead of Friday’s open were shares of the ^XLB^ and the ^UYM^ (below).
Shares of UYM have closed higher for two days in a row, advancing by more than 3% in trading on Thursday.
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Traders looking for general commodity market exposure rather than opportunities in specific commodities may want to keep an eye on ETFs and ETNs like the ^DJP^.
Like UYM, DJP has also closed higher for the past two consecutive trading days.
A number of gold ETFs have moved into neutral territory above the 200-day moving average. These funds include the ^GLD^ and the ^DGP^ (below).
Shares of the DB Gold Double Long ETN have closed higher for three days in a row before Thursday’s pause.
Pulling back toward exceptionally oversold levels ahead of the final trading day of the week was the ^FAZ^. FAZ retreated by more than 7% on Thursday.
Increasingly overbought below the 200-day moving average on Thursday was the ^ITB^.
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David Penn is Editor in Chief of TradingMarkets.com