In trading on Thursday, shares of the SPDR Barclays Short Term
High Yield Bond ETF (Symbol: SJNK) entered into oversold territory,
changing hands as low as $30.47 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 Barclays Short Term High Yield Bond, the RSI
reading has hit 27.1 - by comparison, the RSI reading for the
S&P 500 is currently 52.7. A bullish investor could look at
SJNK's 27.1 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), SJNK's low
point in its 52 week range is $30.30 per share, with $31.08 as the
52 week high point - that compares with a last trade of $30.50.
SPDR Barclays Short Term High Yield Bond shares are currently
trading down about 0.5% on the day.
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