In trading on Friday, shares of the SPDR S&P Emerging Markets Small Cap ETF ( EWX) entered into oversold territory, changing hands as low as $40.05 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 S&P Emerging Markets Small Cap, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 55.9. A bullish investor could look at EWX'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), EWX's low point in its 52 week range is $32.94 per share, with $43.94 as the 52 week high point — that compares with a last trade of $40.01. SPDR S&P Emerging Markets Small Cap shares are currently trading down about 1.6% on the day.