S&P 500 Tech Index RSI Hits 82, Signals Rare Overbought Condition Last Week

According to BTIG chief strategist Jonathan Krinsky, the S&P 500 information technology index's relative strength index (RSI) surged to 82 last week, exceeding the 80 overbought threshold and trading 28% above its 200-day moving average. This extreme condition has occurred only 10 times since 1990, with the most recent instance in June 2024.

Historically, while some instances in 1995 and 1997 resulted in gains, most cases saw significant pullbacks or consolidation over the following 40 trading days. Market analysts, including Yardeni Research founder Ed Yardeni, have begun flashing warning signals for potential near-term corrections amid rising concerns over AI spending sustainability and geopolitical tensions.