In trading on Wednesday, shares of the Proshares Ultra S&P500 ETF (SSO) entered into oversold territory, changing hands as low as $54.46 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 Proshares Ultra S&P500, the RSI reading has hit 28.3 — by comparison, the RSI reading for the S&P 500 is currently 27.9.

A bullish investor could look at SSO's 28.3 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), SSO's low point in its 52 week range is $39.52 per share, with $64.27 as the 52 week high point — that compares with a last trade of $54.60. Proshares Ultra S&P500 shares are currently trading off about 2.2% on the day.