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A decline in Treasury yields this week has given the broader market a boost. However, some names are primed for a pullback. The S & P 500 was headed for back-to-back weekly gains, while the Dow Jones Industrial Average was set to snap a three-week decline. Those moves come as yields ease from levels not seen in 16 years. To be sure, those gains have pushed some stocks into overbought territory, based on their relative strength index. RSI measures the strength and speed of price moves in a stock, and is a useful predictor of whether or not a stock is overbought or oversold. A 14-day RSI reading above 70 indicates a stock is overbought, meaning it could be due for a pullback. A measure below 30, meanwhile, can indicate a potential buying opportunity. Check out the most overbought stocks in the S & P 500: Chipmaker and artificial intelligence beneficiary Nvidia is among the most overbought stocks on the list, with a 14-day RSI reading of 78.1. Shares have surged nearly 220% this year, and the average consensus price target points to roughly 41% upside. Nearly 85% of analysts polled rate Nvidia stock as a buy. Goldman Sachs recently added Nvidia to its “conviction list” for October, and said the company will remain the “accelerated computing industry standard.” However, the stock could see a pullback in the near term, based on its high RSI. Sneaker behemoth Nike also made the overbought cut with an RSI reading of 79.9. Nearly 46% of analysts polled by FactSet maintain a buy rating on Nike stock, while their average price targets forecast nearly 21% upside. Shares have slipped more than 14% in 2023. The company recently missed revenue forecasts for the first time in two years, but the investors remained optimistic as both margins and earnings surpassed expectations for the first quarter. Other overbought names include CME Group, Electronic Arts and Palo Alto Networks. There are some names which could be due for a bounce, however. Here are the most oversold stocks in the S & P 500: Food and spice manufacturer McCormick is at the top of the list with a 14-day RSI of 7.9. Shares have slipped nearly 28% in 2023. The stock isn’t well liked by analysts, with just roughly 19% of them rating it as a buy. However, the consensus price target implies about 27% upside. Despite the strong pullback in McCormick stock, the downtick could signal a potential buying opportunity while the company’s overall health remains strong, according to CNBC’s Jim Cramer . Also on the oversold list is health care company DaVita , which has a 14-day RSI reading of 12.08. Shares have ticked down 0.4% year to date. The stock has been under pressure in recent days thanks to results from a Novo Nordisk study showed weight loss drug Ozempic could postpone the beginning of kidney disease in diabetes patients. The news of the study pushed down a broader field of kidney dialysis provider stocks, including DaVita. Just 11% of analysts polled by FactSet maintain a buy rating on the stock. However, the consensus price target calls for roughly 54% upside. Keurig Dr Pepper and Constellation Brands also made the oversold list.
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