Shares Of SQQQ Now Oversold

In trading on Friday, shares of the Proshares UltraPro Short QQQ ETF ( SQQQ) entered into oversold territory, changing hands as low as $27.34 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 QQQ, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 66.8.

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A bullish investor could look at SQQQ's 29.9 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), SQQQ's low point in its 52 week range is $27.30 per share, with $59.11 as the 52 week high point — that compares with a last trade of $27.47. Proshares UltraPro Short QQQ shares are currently trading down about 1.2% on the day.

Proshares UltraPro Short QQQ 1 Year Performance Chart
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