Relative Strength Index

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3 Reasons US Equities May Be Short-Term Overheated
ZACKS· 2025-05-15 14:50
Market Overview - The year 2025 has seen significant market corrections, particularly influenced by China's "DeepSeek" AI platform and President Trump's "Liberation Day," which led to a brief bear market [1] - Recent trade deals and thawing tensions between the US and China have contributed to a bullish sentiment, although a pullback in US equities may be imminent due to several factors [1] Sentiment Analysis - Market sentiment has shifted from extreme fear to near "Extreme Greed" levels, as indicated by the CNN Fear & Greed Indicator, which reflects a rapid change in investor emotions driven by price appreciation [2] Technical Indicators - The Nasdaq 100 has shown signs of being overbought, with a significant portion of its stocks (over 24%) having a Relative Strength Index (RSI) above 70, historically correlating with negative returns in the following week [4][5] - The S&P 500 Index has increased over 20% since the panic lows on April 7, which is notable compared to its historical average annual return of approximately 10% [7] - The S&P 500 is nearing its .786 Fibonacci retracement levels and old supply levels, suggesting potential resistance that may hinder further upward movement [7][9] Conclusion - The combination of rapidly changing sentiment, extreme overbought conditions, and approaching key resistance levels indicates that caution is warranted for investors in the short term [10]
Boeing Charting A Quiet Comeback? Aircraft Maker Bags Five Major Contracts In Last 10 Days: Here's What Its Chart Shows
Benzinga· 2025-04-01 10:32
Boeing Co. BA expanded its order pipeline after bagging five major deals over the last 10 days. While its short and medium-term price trend remains strong, here's more on the company's technical analysis. What Happened: Here are the five orders bagged by Boeing from March 21 to March 30. Korean Air: Malaysia Aviation Group: Finalized an order for up to 50 widebody aircraft, including 20 each of 777-9 jets, and 787-10 jets, and options for 10 more 787 Dreamliners. This is Korean Air's largest Boeing order, s ...