The S&P 500 ended a five-week winning streak by just barely trading into the red. So investors will be looking for the market to regain momentum this week. Which stocks should lead the way?
Using Kensho, a quantitative analytics tool used by hedge funds, we ran a screen to search for the most oversold and overbought stocks in the S&P 500 relative to their 50-day moving averages. We looked for the stocks that historically have had the biggest future five-day returns after reaching such an oversold state, and conversely, the overbought names that have the lowest five-day returns.
These are the oversold stocks and their five-day average move when they traded this many standard deviations below their 50-day moving average in the past, according to Kensho.