In trading on Friday, shares of the SPDR Portfolio S&P 500 Growth ETF (Symbol: SPYG) entered into oversold territory, changing hands as low as $31.26 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 Portfolio S&P 500 Growth, the RSI reading has hit 26.7 - by comparison, the RSI reading for the S&P 500 is currently 22.0. A bullish investor could look at SPYG's 26.7 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), SPYG's low point in its 52 week range is $31.1699 per share, with $38.55 as the 52 week high point - that compares with a last trade of $31.31. SPDR Portfolio S&P 500 Growth shares are currently trading down about 2.6% on the day.