American Century Select High Yield Getting Very Oversold

In trading on Monday, shares of the American Century Select High Yield ETF (Symbol: AHYB) entered into oversold territory, changing hands as low as $44.91 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 American Century Select High Yield, the RSI reading has hit 26.3 — by comparison, the RSI reading for the S&P 500 is currently 49.7. A bullish investor could look at AHYB's 26.3 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.