SPY Crosses Critical Technical Indicator

In trading on Monday, shares of the SPDR S&P 500 Trust ETF (Symbol: SPY) entered into oversold territory, changing hands as low as $555.5901 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of SPDR S&P 500 Trust, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 28.9. A bullish investor could look at SPY's 28.7 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), SPY's low point in its 52 week range is $493.86 per share, with $613.23 as the 52 week high point — that compares with a last trade of $560.35. SPDR S&P 500 Trust shares are currently trading trading flat on the day.

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Also see:

• FBRX shares outstanding history
• IMCC Average Annual Return
• TIPX Historical Stock Prices

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.