DFAT Crosses Critical Technical Indicator

In trading on Friday, shares of the Dimensional US Targeted Value ETF (Symbol: DFAT) entered into oversold territory, changing hands as low as $68.69 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 Dimensional US Targeted Value, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 46.0. A bullish investor could look at DFAT'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.