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
Core Insights - Boeing Co. has expanded its order pipeline significantly with five major deals in a span of ten days, indicating strong demand for its aircraft [1] Group 1: Recent Orders - Malaysia Aviation Group has ordered 30 Boeing 737 MAX aircraft, including options for 30 more, to modernize its fleet and enhance passenger experience in Southeast Asia [2] - Japan Airlines has placed an order for 17 additional Boeing 737-8s, nearly doubling its backlog for the 737 MAX [3] - Korean Air finalized an order for up to 50 widebody aircraft, including 20 each of 777-9 and 787-10 jets, with options for 10 more 787 Dreamliners, marking its largest order from Boeing [4] - The U.S. Army Special Operations Aviation Command has ordered five additional MH-47G Block II Chinook helicopters, bringing the total under contract to 51 [5] - BOC Aviation has ordered 50 Boeing 737-8 jets to support global airlines, expanding its 737 MAX portfolio [6] Group 2: Technical Analysis - Boeing's stock closed at $170.55, below its eight and 50-day moving averages, with near-term support at $167.02 and $167.67 [7] - The relative strength index is at 48.92, indicating a neutral zone, while the MACD momentum indicator shows a bullish trend [8] - Boeing's stock has faced challenges in 2024 due to safety concerns, production halts, and delivery shortfalls, leading to financial strain [8] Group 3: Price Action and Analyst Ratings - Boeing's stock fell 0.33% in premarket trading, with a year-to-date decline of 0.77% and a 10% drop over the past year [9] - Benzinga Edge Stock Rankings show positive medium and long-term price trends for Boeing, but a weak short-term outlook, with a solid momentum ranking at the 67.79th percentile [10] - Analysts have a consensus "hold" rating for Boeing, with an average price target of $201.63, suggesting a potential upside of 2.55% [11]