Shares of INKM Now Oversold

In trading on Monday, shares of the SPDR SSgA Income Allocation ETF (INKM) entered into oversold territory, changing hands as low as $31.771 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 SSgA Income Allocation, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 35.8.

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A bullish investor could look at INKM's 28.5 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), INKM's low point in its 52 week range is $29.84 per share, with $33.10 as the 52 week high point — that compares with a last trade of $31.81. SPDR SSgA Income Allocation shares are currently trading off about 0.7% on the day.

SPDR SSgA Income Allocation 1 Year Performance Chart

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