Equity Panic Goes Global as Indexes Trade at Oversold LevelsBy
The global market maelstrom has pushed stock gauges around the world into oversold territory based on a key technical indicator.
The synchronized selloff mean gauges including the S&P 500 Index, MSCI Asia Pacific Index, MSCI World Index, Nikkei 225 Index, Stoxx Europe 600 Index and Russell 2000 Index have fallen too fast, according to their 14-day relative strength indexes.
That’s a striking reversal from the euphoria seen in early January, when global stocks surged to some of the most overbought levels on record.
The relative strength index is a technical indicator that tracks the magnitude and speed of price fluctuations. Typically, an index with an RSI below 30 is deemed oversold while above 70 is considered overbought.