"Balancing Caution and Potential: Navigating Stock Momentum Signals"

The S&P 500 and Nasdaq Composite have reached new highs, but some market observers are cautious due to elevated RSI readings, a momentum gauge. However, Mark Newton of Fundstrat argues that overbought RSI levels do not necessarily indicate vulnerability in stocks. While smaller cap stocks and those with high beta may reach RSI extremes more easily, historical data suggests that overbought RSI levels do not hinder further gains. U.S. stock-index futures are slightly lower, and key economic data and Federal Reserve officials' comments are expected. Elon Musk has filed a lawsuit against OpenAI, and shares of New York Community Bank are down after replacing its CEO. Dell Technologies and NetApp stocks surge after posting strong results, while manufacturing in China continues to contract.