High Probability ETF Trading: 7 ETFs You Need to Know for Wednesday (VNQ, URE, XLY, RSX, FXI, EWZ, QLD)

With pre-market futures hinting at a powerful open, many of the exchange-traded funds that have pulled back into or near oversold territory are likely to see significantly higher levels – at least in early trading today on Wednesday.

Today’s 7 ETFs You Need to Know focuses on those funds that are just outside of oversold territory above the 200-day moving average.

Here are 7 ETFs You Need to Know for Wednesday.

Among the exchange-traded funds (ETFs) that are pulling back toward – but have not yet entered – oversold territory above the 200-day moving average are a pair from the real estate sector: the ^VNQ^ and the ^URE^ (below).

URE chart

Shares of URE have closed lower for three days in a row, and are back below their short-term, 5-day moving average. Any significant selling on Wednesday will likely pull the ETF into oversold territory.

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Consumer discretionary stocks, as represented by the ^XLY^ (below), have been relatively resilient even in the midst of selling as Tuesday’s intraday reversal shows.

XLY chart

XLY was well on its way toward a close in oversold territory early in trading on Tuesday. But strong buying over the course of the trading day helped take back much of the early losses.

Three members of the so-called BRIC nations of Brazil, Russia, India and China have exchange-traded funds nearing oversold territory ahead of trading on Wednesday. Pulling back were shares of the ^RSX^, the ^FXI^ and the ^EWZ^ (below).

EWZ chart

Shares of EWZ were in oversold territory above the 200-day moving average as recently as a week ago, when a two-day pull back led to a strong one-day bounce of more than 2%.

Off more than 2% and pulling back for a third day in a row was the ^QLD^.

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David Penn is Editor in Chief of TradingMarkets.com