ETFs Going from Oversold to Overbought

In just a few days, most of the ETFs that we track have moved from oversold conditions to overbought conditions. A new uptrend could be in place, but we still like to point out where things may be getting overheated.

Below is a list of selected ETFs that shows where they are trading based on their normal trading ranges. The ones highlighted in red are trading near their theoretical highs.

Fixed income, dividend, and consumer staples ETFs are three of the four highlighted, which indicates that defensive stocks are the most overbought, but software stocks are up there as well. Transports and Internet stocks still remain at the bottom end of their trading ranges, and the oil services ETF (OIH) has also moved towards the bottom of its range as the price of oil has declined of late.

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