S&P 500 & Nasdaq Composite: Identifying Overbought Stocks for Your Investment Strategy

Saturday, 16 August 2025, 12:04

Investment strategy focuses on identifying overbought stocks as the S&P 500 and Nasdaq Composite approach record highs. This analysis highlights risky stocks, including eBay Inc., Intel Corp., and Incyte Corp., that could face pullbacks. As the stock markets fluctuate, understanding these dynamics is essential.

Cnbc — S&P 500 & Nasdaq Composite: Identifying Overbought Stocks for Your Investment Strategy

Understanding Overbought Stocks

In a market where the S&P 500 index and Nasdaq Composite are reaching historic peaks, investment strategy involves more than just picking strong assets. Identifying overbought stocks is crucial for informed decisions. Notably, companies such as eBay Inc., Intel Corp., and Incyte Corp. have been highlighted as contenders at risk of a pullback.

Key Indicators

14-day relative strength index (RSI): A significant metric for assessing overbought conditions.
Market Sentiment: Understanding trends can help mitigate risks.

Investment Strategy Overview

As investors evaluate business news and market movements, recognizing when to adjust strategies is paramount. Stocks within the Dow Jones Industrial Average and other major indices warrant special attention as their valuations soar.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.