SPXU Crosses Critical Technical Indicator

In trading on Thursday, shares of the ProShares UltraPro Short S&P500 ETF (Symbol: SPXU) entered into oversold territory, changing hands as low as $11.12 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 ProShares UltraPro Short S&P500, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 72.9. A bullish investor could look at SPXU's 29.3 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), SPXU's low point in its 52 week range is $11.12 per share, with $23.86 as the 52 week high point — that compares with a last trade of $11.16. ProShares UltraPro Short S&P500 shares are currently trading down about 1.4% on the day.

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