The S&P 500 and Nasdaq Composite experienced significant declines of nearly 2% and 4.6%, respectively, largely due to a sell-off in the tech sector, especially among semiconductor stocks. The Dow Jones Industrial Average, however, managed a slight gain of 0.6%. Stocks are considered oversold when their 14-day relative strength index (RSI) falls below 30, suggesting they may rebound soon.
Notably, Intercontinental Exchange and CME Group, both with an RSI of 24.4, have seen their shares drop due to concerns over competition from perpetual futures, which lack expiration dates and could threaten traditional trading platforms. The CME's recent lawsuit against the Commodity Futures Trading Commission regarding bitcoin perpetual futures has also contributed to its 10% decline this week.
Other oversold stocks include Albemarle and Akamai Technologies, both with RSIs below 24. Conversely, some stocks have moved into overbought territory, such as Cardinal Health, which surged over 7% and reached a 52-week high of $240.44, as investors shifted towards more defensive sectors amid falling oil prices.
Delta Air Lines and other airlines also showed overbought signals with RSIs above 76, reflecting a broader trend of investors seeking stability in the face of market volatility