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Selling was broad based on Tuesday. At the close ETFs tracking major stock market indexes were oversold with a ConnorsRSI reading of 20 or below. Midcaps and small caps were especially oversold.
This weakness created buying opportunities in sector funds and a majority of SPDR Select Sector ETFs ended Tuesday oversold.
The selloff was not confined to the U.S. stock market as ETFs tracking European stock markets also ended the oversold with ConnorsRSI readings below 20.
With markets broadly oversold, now is a time to consider adding to long positions. ETFs with ConnorsRSI readings below 20 can be considered buys on additional weakness.
Now let’s look at the most overbought and oversold stocks (according to ConnorsRSI) heading into trading for September 24, 2014. ConnorsRSI is a proprietary and quantified momentum oscillator developed by Connors Research that indicates the level to which a security is overbought (high values) or oversold (low values).
DF (Dean Foods Company) is the most oversold stock with a ConnorsRSI reading of 1.12.
FEM (First Trust Emerging Mrkts AlphaDEX ETF) is the most oversold non-leveraged ETF with a ConnorsRSI reading of 4.13.
MVV (Proshares Ultra Midcap 400) is the most oversold leveraged ETF with a ConnorsRSI reading of 10.47.
WTW (Weight Watchers International In) is the most overbought stock with a ConnorsRSI reading of 97.75.
HYD (Market Vectors High-Yield Municipal ETF) is the most overbought ETF with a ConnorsRSI reading of 93.25.
TradingMarkets Lists provide users pre-populated lists of stocks and ETFs identifying symbols with overbought and oversold ConnorsRSI and Bollinger Bands® readings. The Screener Lists are powered by The TradingMarkets Screener.
All data is as of the end of day on 9/23/2014.