Walmart and Starbucks Stocks May Drop After Recent Rally

Wall Street experienced a significant rebound this week following a global sell-off earlier in August, with the Nasdaq Composite poised for the largest percentage gains among major indexes, projected to close 5% higher. The S&P 500 is also on track for a notable week, expected to finish over 3% higher, marking its best performance of the year. The Dow Jones Industrial Average is set to conclude the week with a 2% increase. Despite the positive momentum, analysts suggest that some stocks may be due for a pause or pullback, as they appear to have surged too quickly in the recent rally. Technical analysis indicates that several stocks within the S&P 500 are currently overbought, raising concerns about their sustainability. Notably, Starbucks has an RSI (Relative Strength Index) of approximately 72.6, reflecting a significant 25% increase in shares this week following the announcement of a new CEO. In addition to Starbucks, Walmart is also highlighted with an RSI of about 70.7. Other notable mentions include Kellanova, which boasts the highest RSI on the list at around 88.8, and cybersecurity firm Fortinet, whose shares reached a new 52-week high with an RSI of 77.7. Nike rounds out the list with an RSI of approximately 73, indicating a potential for correction as the market assesses the sustainability of these gains.