China's Benchmark Stock Gauge Enters Oversold Territory Amid Weak Sentiment

According to Yahoo News, China's benchmark stock gauge, the CSI 300 Index, has reached an oversold level as the country's economic performance continues to falter and Beijing's market rescue measures fail to impress investors. The index dropped as much as 0.9% on Tuesday, reaching its lowest level since February 2019. This pushed its 14-day relative strength index below 30, a level that some traders view as an indication that the market has fallen too far, too quickly. Although the technical indicator suggests a near-term bottom may be in sight, previous rallies have been short-lived, with the oversold threshold being crossed twice earlier this year. Investors are now looking forward to key upcoming economic meetings for possible additional policy support from Beijing. China's services sector continues to maintain growth, as shown by a recent private survey.