During Thanksgiving week, typically marked by reduced stock trading volume, key stocks like Microsoft (MSFT), Amazon, Adobe Systems, and Meta Platforms hit 52-week highs.
The S&P 500 had risen 11% from its October low, with its relative strength index (RSI) reaching 71.3, suggesting potential overbought conditions. The Nasdaq Composite and Nasdaq-100 also had elevated RSIs, indicating traders' uncertainty amid the battle for control of artificial intelligence. The Dow Jones Industrial Average saw an RSI of 71.2, influenced by Microsoft's new high.
While RSIs above 70 generally warn of a potential pullback, the current levels do not indicate extreme conditions.
Analysts foresee stocks rising into the new year, although gains may be more modest given recent increases since October. A pullback could present a watchful opportunity for bargain hunting.
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