3 Reasons US Equities May Be Short-Term Overheated

From Nasdaq: 2025-05-15 09:49:00

In 2025, China’s “DeepSeek” AI platform caused a stock market correction, followed by President Trump’s “Liberation Day” leading to bear market territory. Trade deals between the US and China have eased tensions. However, sentiment has shifted to extreme greed, the Nasdaq 100 is overbought, and the S&P 500 is approaching resistance levels.

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Key factors like rapidly changing sentiment, overbought conditions, and resistance levels suggest caution in the short term for investors in US equities. The S&P 500 and other indices are approaching Fibonacci retracement levels and old supply levels, indicating a potential pullback in the market.



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