Pace of FANG Rout Turns Technical Signal to Buy Ahead of Apple

(Bloomberg) -- Tech bulls eyeing Apple Inc.’s earnings release as the last best hope for an end to the group’s recent rout have another reason for optimism: The latest selling has been so severe that a technical indicator is now flashing a buy signal.

A measure of relative strength known as the Williams Percentage R Indicator tumbled below -80 as the NYSE Fang+ Index’s slide reached 9 percent over three days. Chart watchers view selloffs as overdone when the measure reaches such depths.

Pace of FANG Rout Turns Technical Signal to Buy Ahead of Apple

The indicator’s recent track record has been solid. It signaled the NYSE FANG+ group was overbought on Jan. 29; a week later the cohort had plunged 8 percent. The index rose 0.3 percent as of 11:28 a.m. Tuesday. Apple reports results after markets close.

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