Nvidia's Stock is a Monster, But it's also the Most Overbought it has EVER Been!
- The “internals” for the stock market during yesterday’s decline were not very bad. So, as long as Nvidia holds up…and the market broadens out…everything should be just fine.
- HOWEVER, NVDA has now become the most overbought it has EVER been by a couple of measures. So, if this fabulous stock joins other tech names with a pullback in the next week or so, it’s going to create some problems for the stock market over the near-term. (BTW, if big-cap tech gets hit, there won’t be any rotation. The entire market will see some weakness as well.) Therefore, investors will need to stay a little bit more nimble in the weeks ahead.
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