S&P 500 has 70 stocks in overbought territory with 10 looking extremely overbought
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Despite Wall Street’s benchmark S&P 500 index (SP500) hovering less than a percent below its record intraday high, if investors were to dig into the market from a technical perspective, they will see that much of the gauge is in overbought territory.
Former U.S. President Donald Trump’s election victory earlier this month sparked a furious advance on Wall Street, but that momentum has cooled off over the last ten days.
As per the Relative Strength Index (RSI) technical indicator, an RSI level above 70 is considered overbought and a level below 30 oversold. Currently, 70 stocks (14% of the S&P 500 index) are in overbought territory, whereas just 9 stocks (1.8%) are flashing oversold.
Ten of those 70 stocks have an RSI level north of 80, which is considered extremely overbought. Those 10 are highlighted below:
No. 10: Assurant (AIZ), RSI 0f 80.00.
No. 9: Kinder Morgan (KMI), RSI 0f 80.41.
No. 8: The Williams Companies (WMB), RSI 0f 81.00.
No. 7: Walt Disney (DIS), RSI 0f 81.57.
No. 6: Axon Enterprise (AXON), RSI 0f 81.96.
No. 5: Live Nation Entertainment (LYV), RSI 0f 82.09.
No. 4: Targa Resources Corp. (TRGP), RSI 0f 82.22.
No. 3: Netflix (NFLX), RSI 0f 82.41.
No. 2: Oneok (OKE), RSI 0f 82.57.
No.1: Blackstone (BX), RSI 0f 82.94.
Year-to-date price action: AIZ +33.6%, KMI +62.1%, WMB +71.5%, DIS +28.2%, AXON +143.3%, LYV +48.9%, TRGP +138.66%, NFLX +84.8%, OKE +66.7%, and BX +50.9%.