SPXU Crowded With Sellers

In trading on Thursday, shares of the Proshares UltraPro Short S&P500 ETF (SPXU) entered into oversold territory, changing hands as low as $42.93 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 28.9 — by comparison, the RSI reading for the S&P 500 is currently 70.8.

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A bullish investor could look at SPXU's 28.9 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), SPXU's low point in its 52 week range is $42.93 per share, with $88.07 as the 52 week high point — that compares with a last trade of $42.98. Proshares UltraPro Short S&P500 shares are currently trading off about 1.5% on the day.

Proshares UltraPro Short S&P500 1 Year Performance Chart

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