TradingMarkets 7 ETFs You Need to Know for Wednesday

• By David Penn
• On 4:33 pm EDT, Tuesday October 20, 2009

Equity index exchange-traded funds (ETFs) continued to pull back on Tuesday, creating new oversold markets above the 200-day. Around the globe, selling in Brazil was especially aggressive while from a sector perspective, materials ETFs were among the leaders to the downside.

Here are 7 ETFs You Need to Know for Wednesday.

Small cap stocks such as those in the Russell 2000 Index were among those most aggressively sold on Tuesday. Down by more than 1% and into oversold territory above the 200-day moving average was the iShares Russell 2000 Index Fund ETF (NYSE:IWM - News).

Dropping over 3% and into oversold territory was the iShares MSCI Brazil Index ETF (NYSE:EWZ - News). EWZ, which rallied from far sharper intraday lows, had not closed below its 5-day moving average since October 1.

Closing in oversold territory for two out of the past three days was the ProShares Ultra Financials ETF (NYSE:UYG - News). UYG is leveraged two-to-one to the daily performance of the Dow Jones U.S. Financials Index of stocks including Wells Fargo (NYSE:WFC - News) and Goldman Sachs (NYSE:GS - News).

The iShares Nasdaq Biotechnology ETF (NYSE:IBB - News) dropped to its lowest levels since the beginning of the month on Tuesday, shedding more than 2%.

Off for a third consecutive session and down into oversold territory above the 200-day moving average was the SPDR Homebuilders ETF (NYSE:XHB - News). Sellers stepped up pressure in the sector in the wake of disappointing home starts data.

Precious metals ETFs sold off after a two-day rally. For one, the iShares Silver Trust ETF (NYSE:SLV - News) pulled back by more than 1% on Tuesday, but has not yet entered oversold territory. Meanwhile, closing higher below the 200-day moving average for the first session out of the past four was the PowerShares DB U.S. Dollar Bullish ETF (NYSE:UUP - News).

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