U.S. mega tech stocks ended another remarkable session on Monday, with NVIDIA Corp. (NASDAQ:MSFT) closing at record highs.
The NASDAQ 100 Index, as reflected by the Invesco QQQ Trust (NASDAQ:QQQ), climbed 1.2%, nearing its November 2021 peak.
Chart: Nvidia And Microsoft Reach Record Highs On Monday
NVIDIA’s performance for the year has soared by 250%, while Microsoft has seen a 59% return year to date, its best one since 1999.
Today’s best performers among NASDAQ 100’s components were Enphase Energy Inc. (NASDAQ:ALGN) up 4.2%.
Nasdaq Eyes 2021’s Peak, Overbought Technical Conditions Emerge
The NASDAQ 100 Index is closing in on its November 2021 all-time high of 16,764, just 4.5% away. The tech-heavy index’s year-to-date gains have reached 47%.
However, technical indicators like the widely-followed Relative Strength Index (RSI) momentum oscillator, has climbed above the key threshold of 70, a clear signal that the market has entered overbought territory.
This condition typically indicates a period where bullish sentiment and buying pressure have been exceptionally strong. However, it’s also a cautionary note for investors, as such heightened levels often precede a potential market consolidation or pullback
The last time the Nasdaq 100 Index entered an RSI overbought territory was on July 13, with the tech index further surging by 2.5% to the July 19 high of 15,932 and then stopping its rally.
Photo: Shutterstock
