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Wall Street’s rally has pushed a notable slice of the S&P 500 (SP500) into technically overbought territory, underscoring the market’s strong momentum as it trades near record highs.
According to the relative strength index (RSI), a widely used momentum gauge, 41 of the benchmark’s components now sport readings above 70, the level often associated with overbought conditions.
This represents almost 10% of the index’s membership, highlighting the extent of the recent surge. The list spans various sectors, with Palantir Technologies (NASDAQ:PLTR) and eBay (NASDAQ:EBAY) ranking among the 10 most stretched by RSI measures.
While overbought readings don’t guarantee a pullback, they can signal that a stock’s recent advance may be due for consolidation.
Below are the 10 most overbought S&P 500 stocks.
No. 1: eBay (NASDAQ:EBAY), RSI of 81.34
No. 2: Generac Holdings (GNRC), RSI of 80.18.
No. 3: Leidos Holdings (LDOS), RSI of 79.50.
No. 4: Corning (GLW), RSI of 79.11.
No. 5: Cummins (CMI), RSI of 78.81.
No. 6: Motorola Solutions (MSI), RSI of 78.28.
No. 7: Electronic Arts (EA), RSI of 77.99.
No. 8: Incyte Corp (INCY), RSI of 77.26.
No. 9: Palantir Technologies (NASDAQ:PLTR), RSI of 75.61.
No. 10: Jacob Solutions (J), RSI of 74.91.
S&P 500 Tracking Funds: (MUTF:FXAIX), (MUTF:VFIAX), (MUTF:VFFSX), (MUTF:SWPPX), (NYSEARCA:SPY), (NYSEARCA:VOO), (NYSEARCA:IVV), (NYSEARCA:RSP), (NYSEARCA:SSO), (NYSEARCA:SH), (NYSEARCA:SDS) and (NYSEARCA:SPXU).
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