The Ultralong Financial ETF (UYG: 3.74 0.00%) has pulled back into a temporarily oversold condition. UYG has been beating around inside a rough triangle pattern, but may find support as it tests the 50 day average. Depending on where one draws a trendline, UYG could be still trading within a triangle formation.

This index is similar to many others. They have found a bottom, rallied above the 50 day average, and are now pulling back near the average.

I’m seeing quite a few indexes that are short-term oversold, as measured by RSI(2). I’m expecting a bounce, or at least some stabilization, over the next few days.

Dogwood has a recent post about trading sector specific ETFs using RSI(2).