In trading on Monday, shares of the Invesco S&P 500— Quality ETF (Symbol: SPHQ) entered into oversold territory, changing hands as low as $32.16 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 Invesco S&P 500— Quality, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 30.5. A bullish investor could look at SPHQ's 27.5 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), SPHQ's low point in its 52 week range is $25.93 per share, with $34.13 as the 52 week high point — that compares with a last trade of $32.13. Invesco S&P 500— Quality shares are currently trading down about 2.1% on the day.