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The Top Five Overbought ETFs in the Market Today

Andy Crowder

Mr. Market is at it again.

After a brief correction on 9/25, the S&P has managed to climb slightly higher, but that hasn’t stopped some of the ETFs I follow from pushing into a short-term overbought state.

Many of the ETFs I follow for the Options Advantage service have pushed into a short-term “very overbought” so while the rally in the ETFs mentioned below looks strong, I do expect a retreat or at minimum a pause over the next week or so.

Some of the most short-term overbought ETFs at the moment are:

  • SPDR S&P Financia ETF (XLF)                            97.8 (very overbought)
  • Direxion Fin. Bull Shares 3x (FAS)                      97.4 (very overbought)
  • SPDR Health Care (XLV)                                      97.1 (very overbought)
  • SPDR Consumer Staples (XLP)                         98.5 (very overbought)
  • SPDR S&P 500 (SPY)                                           95.8 (very overbought)

The aforementioned ETFs are just a few of the highly-liquid, overbought ETFs I follow in the market. In fact, out of the 40 ETFs that I follow for the Options Advantage service 16 are in an extreme overbought state.

Typically, when this type of overbought set-up occurs I will fade the market by selling bear call spreads with a high-probably of success.

If you would like to learn more about the strategies I use in the Options Advantage service please do not hesitate to email me at optionsadvantage@wyattresearch.com.