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The S&P 500 Chart Says That Apple Is Oversold, Ford Is Overbought


Only four other times in the last five years have stocks been more overbought.

Currently our firm has a Strong Buy (5 Rating) on the S&P 500 (INDEXSP:.INX), which we went to back on December 19.

At this time, 6% of the S&P 500 is overbought. To put this in perspective, only four other times in the last five years have stocks been more overbought.
  • 11% was overbought both in April 2010 and May 2010.
  • 30% was overbought in July 2009.
  • 9% was overbought in September 2008.

The two most overbought names in the S&P 500 are Whirlpool Corporation (NYSE:WHR) and Tenet Healthcare (NYSE:THC). Conversely, the two most oversold names are Exelon Corporation (NYSE:EXC) and Apple (NASDAQ:AAPL). We went to a Strong Sell on Apple on November 8. We don't not recommend buying stocks based on a countertrend.

(Also read: Today's Stock Downgrades: Apple Unable to Keep the Doctor Away.)

Click to enlarge

Ford (NYSE:F), a widely held name that is up 28% since moving to a Strong Buy, is now overbought.

Click to enlarge

Below is an updated list of the 20 strongest names in the S&P 500.

Click to enlarge

Also read: Is Apple in Its Sammy Hagar Era?

For more from, click here.

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No positions in stocks mentioned.
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