U.S. Stocks Sink to Oversold Territory for First Time in 2019

(Bloomberg) -- The S&P 500 Index hasn’t been down this much, this persistently since U.S. stocks closed at their 2018 lows on Christmas Eve.

Monday’s 0.3% decline leaves the benchmark U.S. equity gauge 6.8% below record highs reached at the end of April. The losses pushed the S&P 500 into technically oversold territory, defined as a sub-30 reading on the 14-day relative strength index, which tracks the persistence and magnitude of price swings.

The index has ended the day in this condition just 1% of the time since the bull market began in March 2009, with the longest such streak lasting four trading sessions.

Futures indicate the S&P 500 will open higher Tuesday, after closing lower in four of the last five days.

©2019 Bloomberg L.P.