U.S. Stocks Sink to Oversold Territory for First Time in 2019
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

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

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(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.

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

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.

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