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Market Volatility Persists: Investors Turn to RSI

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  Published in Stocks and Investing on Saturday, February 14th 2026 at 2:02 GMT by CNBC
      Locales: New York, California, UNITED STATES

Saturday, February 14th, 2026 - As the first full week of trading in 2026 concludes, market volatility remains a dominant theme. While macroeconomic indicators continue to offer a broad perspective, investors are increasingly turning to technical analysis for short-term trading opportunities and risk management. One of the most frequently utilized tools is the Relative Strength Index (RSI), which attempts to gauge the momentum of a stock and identify potentially overbought or oversold conditions.

Recent analysis by CNBC has pinpointed several S&P 500 stocks exhibiting extreme RSI readings, either signaling a potential pullback for those soaring to new heights or a possible rebound for those languishing under pressure. It's crucial to remember, however, that RSI is not a foolproof predictor. It's a tool best used in conjunction with fundamental analysis, assessing company financials, industry trends, and overall economic outlook.

The Overbought Landscape: A Closer Look

The RSI threshold of 70 is generally considered to indicate that a stock has risen too quickly and may be due for a correction. Currently, five S&P 500 companies stand out with RSI readings above this level:

• Nvidia (NVDA) - RSI: 92.63: Nvidia's stratospheric rise, fueled by the relentless demand for its GPUs in artificial intelligence applications, continues unabated. While the company remains a leader in a high-growth sector, an RSI of 92.63 is exceptionally high, suggesting a considerable correction is possible. The question isn't if Nvidia will face headwinds, but when. Investors should carefully consider whether the current price adequately reflects the long-term potential, or if a profit-taking opportunity is emerging.

• Microsoft (MSFT) - RSI: 78.98: Microsoft's consistent performance, driven by its cloud services (Azure), software offerings (Office 365), and strategic acquisitions, has solidified its position as a market leader. This strength is reflected in its high RSI. However, the sheer size of Microsoft means significant growth is increasingly difficult to achieve, and a premium valuation leaves little room for error.

• Eli Lilly (LLY) - RSI: 77.35: The pharmaceutical giant has been a market darling, driven by the success of its new weight-loss drugs. Investor enthusiasm has pushed the stock to impressive levels, but such rapid gains are often unsustainable. Regulatory scrutiny regarding drug pricing and potential competition could introduce volatility.

• Advanced Micro Devices (AMD) - RSI: 76.21: AMD's resurgence in the semiconductor market has been remarkable. Successfully challenging Intel in the CPU space and gaining ground in the GPU market has propelled its stock price upward. While the company demonstrates strong fundamentals, the current RSI suggests potential overextension.

• Apple (AAPL) - RSI: 73.57: Even the tech titan Apple isn't immune to overbought conditions. Despite its loyal customer base and innovative product pipeline, Apple's growth rate has slowed compared to earlier years. The RSI indicates that while still popular, the stock may be overvalued relative to its near-term growth prospects.

Identifying Potential Value: The Oversold Territory

An RSI below 30 typically suggests a stock is undervalued and may be poised for a rebound. Several S&P 500 companies currently fall into this category:

• Citigroup (C) - RSI: 24.78: Citigroup continues to struggle with regulatory challenges and broader economic concerns within the banking sector. This has weighed heavily on its stock price, creating a potentially attractive entry point for value investors. However, the risks remain substantial.

• 3M (MMM) - RSI: 26.72: The numerous lawsuits related to PFAS contamination have created significant uncertainty around 3M's future. This legal burden has depressed the stock price, but potential settlements and restructuring efforts could pave the way for a recovery.

• Moderna (MRNA) - RSI: 28.07: The decline in demand for COVID-19 vaccines has significantly impacted Moderna's revenue and stock price. While the company is diversifying into other mRNA-based therapies, it faces a challenging transition period.

• Western Digital (WDC) - RSI: 27.75: Weakness in the memory chip market has affected Western Digital's performance. An industry recovery could provide a catalyst for a rebound, but the timing remains uncertain.

• Marriott International (MAR) - RSI: 29.33: Concerns about a potential economic slowdown and its impact on travel demand are weighing on Marriott International's stock. A recovery in global travel could boost the company's prospects.

A Word of Caution

It is paramount to remember that the RSI is a tool, not a crystal ball. Market conditions can change rapidly, and unexpected events can invalidate technical signals. Investors should always perform comprehensive due diligence, considering fundamental factors, industry dynamics, and their individual risk tolerance before making any investment decisions. Diversification is also key to mitigating risk in a volatile market environment.