Software Smoked — RSI at 16.9

RSI 16.9!

Software ETF, IGV, trading down today again. RSI at the most oversold levels since May 2006...

Source: LSEG Workspace

 

The collapse

IGV/QQQ ratio has been properly smoked.

Source: LSEG Workspace

 

IGV mania

Volumes were off the charts during yesterday's puke. Let's see how things develop today.

Source: GS

 

Shares outstanding

IGV dying on us...

Source: GS

 

Credit on the move

High-yield software and tech spreads are moving wider. Software loans now account for ~16% of the leveraged loan market, a concentration worth watching. Goldman's credit team flags that this ~16% share mirrors energy in ’15/16 and utilities post-’02, making spread behavior here a key early warning signal.

Source: GS/Nelson Armbrust

 

But been waiting for you

IGV putting in a massive hammer candle so far today. A hammer candle post such a sharp move lower could be the short term exhaustion signal.

Source: LSEG Workspace