TradingMarkets 7 ETFs You Need to Know for Thursday

• By David Penn
• On 4:04 pm EDT, Wednesday October 21, 2009

A late sell-off helped send equity index ETFs into oversold territory above the 200-day moving average. Meanwhile, banks and home construction exchange-traded funds (ETFs) remained under selling pressure and earning ETF PowerRatings upgrades in the process.

Here are 7 ETFs You Need to Know for Thursday.

A dramatic sell-off in the final 45 minutes of trading on Wednesday sent the Dow DIAMONDS (NYSE:DIA - News) tumbling by nearly 1% and into oversold territory above the 200-day.

Among the top rated ETFs for Thursday are financial oriented funds such as the SPDR KBW Regional Banking ETF (NYSE:KRE - News) and the iShares Dow Jones U.S. Financial Services Index ETF (NYSE:IYG - News). Both ETFs have 2-period RSIs of less than 15.

While much focus has been put on health care stocks in general, both biotechnology and pharmaceuticals have come under specific selling pressure in recent days. Earning an ETF PowerRating of 8 after gapping down and following-through lower was the Pharmaceutical HOLDRS ETF (NYSE:PPH - News), while the iShares Nasdaq Biotechnology ETF (NYSE:IBB - News) stablized after dropping by more than 2% yesterday. Still in oversold territory, IBB has an ETF PowerRating of 8.

Down 2% on Wednesday was the iPath MSCI India Index ETN (NYSE:INP - News). The pullback helped boost the fund's ETF PowerRating from 5 to 7.

The United States Oil Fund (NYSE:USO - News) gained well over 2% in trading on Wednesday. The day's gains represent new 20-day and 55-day highs for the commodity-based ETF.

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Buzz up!