BIV Crowded With Sellers

In trading on Wednesday, shares of the Vanguard Intermediate-Term Bond ETF (Symbol: BIV) entered into oversold territory, changing hands as low as $73.35 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 Vanguard Intermediate-Term Bond, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 51.8. A bullish investor could look at BIV's 29.1 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.