In trading on Thursday, shares of the Daily S&P 500® Bear 3x Shares ETF (SPXS) entered into oversold territory, changing hands as low as $16.4299 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 Daily S&P 500® Bear 3x Shares, the RSI reading has hit 25.1 — by comparison, the RSI reading for the S&P 500 is currently 75.3.

A bullish investor could look at SPXS's 25.1 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.

Looking at a chart of one year performance (below), SPXS's low point in its 52 week range is $16.4299 per share, with $54.14 as the 52 week high point — that compares with a last trade of $16.59. Daily S&P 500® Bear 3x Shares shares are currently trading off about 4.6% on the day.