Small cap stocks are showing signs of being in oversold territory after a more than three-week selloff, according to Bloomberg data.
More than 15% of the S&P 600 Smallcap Index began the week trading in oversold territory, with the 14-day relative strength index below 30, meanwhile, only 3% of the index was in overbought territory.
There have only been 66 days where the gap between oversold and overbought stocks was this wide since 2012, Bloomberg said.
The S&P 600 Smallcap Index fell below its 200-day moving average for the first time since the Brexit vote late last week.
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