A few stocks may be due for a pause or a pullback after Wall Street roared back this week following a global sell-off to start August. All three major averages are on pace to wrap up the week higher, with more positive economic data released this week spurring a recovery rally. The Nasdaq Composite is on track to see the largest percentage gains of the indexes, heading for a close that is 5% higher on the week.
Meanwhile, the S & P 500 is on pace to finish the week more than 3% higher, while the Dow Jones Industrial Average is on pace to finish 2% higher. For the S & P 500, it is the best week of the year so far. CNBC Pro screened for S & P stocks with a high 14-day relative strength index.
An RSI above 70 can indicate overbought conditions for a stock and potentially signal a near-term downturn. These stocks may have come too far, too fast in the comeback rally, according to technical analysis. Here are the most overbought names in the index: Starbucks is one of those names, having an RSI of about 72.
6. Shares of the Seattle-based coffee company have surged more than 25% this week following the announcement that it is replacing CEO Laxman Narasimhan with Chipotle CEO Brian Niccol. The stock saw its best day ever on Tuesday on the news, sending shares 25% higher.
Meanwhile, Chipotle's stock plunged more than 10% on Niccol's departure. That stock is down around 5% week to date. SBUX mountain 2024-08-12 Starbucks, week-to-date The Street has since reacted favorably to the leade.