The market is coming off a particularly volatile week, and a number of stocks that experienced sharp declines may be poised for a rebound. The S&P 500 is down nearly 2% this week, and the Nasdaq Composite Index is down 4.6% over the same period. A sharp decline in the tech sector, particularly semiconductor stocks, contributed to the index’s decline. The Dow Jones Industrial Average rose 0.6% to end the week in the green. Some stocks have fallen significantly this week, falling into oversold territory. CNBC Pro used our stock screener tool to identify these stocks based on their 14-day relative strength index (RSI). When the RSI falls below 30, a stock is considered oversold, meaning it could rebound in the short term. On the other hand, stocks with a reading above 70 are overbought, meaning they may be susceptible to declines. The table below shows the names that were oversold this week. Two major exchanges, Intercontinental Exchange and CME Group, made the list of most oversold stocks. The RSI for both stocks is 24.4. Investors have sold their shares in trading platform operators as they weigh the risks that perpetual futures pose to traditional exchanges. Perpetual futures are similar to futures contracts, but they do not have an expiration date. These are part of a new wave of trading products that could compete with the services of Intercontinental Exchange and CME. Just over a week ago, CME sued the Commodity Futures Trading Commission over the federal agency’s late May move to allow prediction market platform Calsi to offer Bitcoin perpetual futures. CME is down 10% this week, and Intercontinental Exchange is down more than 7%. This decline resulted in double-digit losses for the stock in June. Other oversold stocks this week include Albemarle and Akamai Technologies, both with RSI values below 24. Despite the selling during the week, investors bought up several stocks, pushing some into overbought territory. This week’s overbought stocks include: Cardinal Health, a medical products distributor, was the most overbought stock this week with an RSI of 84.4. Stocks rose more than 7% this week as investors discounted tech stocks and flocked to more defensive sectors of the market. Cardinal hit a new 52-week high of $240.44 on Friday, closing up more than 1%. Investors also rushed into airlines as oil prices fell. On Friday, West Texas Intermediate crude oil futures for August delivery fell 3.74% to end at $69.23 per barrel. The last time WTI futures closed below the $70 level was on February 27, the day before the Iran war began. Delta Air Lines’ RSI is near 76, while United Airlines and Southwest Airlines’ RSIs are 77.3 and 79.1, respectively, suggesting all three companies are overbought. Other names on the overbought list include Hormel Foods and Williams-Sonoma.
