DoubleLine Shiller CAPE U.S. Equities Getting Very Oversold

In trading on Tuesday, shares of the DoubleLine Shiller CAPE U.S. Equities ETF (Symbol: CAPE) entered into oversold territory, changing hands as low as $30.99 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 DoubleLine Shiller CAPE U.S. Equities, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 46.9. A bullish investor could look at CAPE's 29.97 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.