SLYG Crosses Critical Technical Indicator

In trading on Thursday, shares of the SPDR S&P 600 Small Cap Growth ETF (Symbol: SLYG) entered into oversold territory, changing hands as low as $73.01 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 600 Small Cap Growth, the RSI reading has hit 27.7 — by comparison, the RSI reading for the S&P 500 is currently 34.8. A bullish investor could look at SLYG's 27.7 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), SLYG's low point in its 52 week range is $67.07 per share, with $80.96 as the 52 week high point — that compares with a last trade of $73.28. SPDR S&P 600 Small Cap Growth shares are currently trading off about 0.9% on the day.

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