Applied Materials, DraftKings, 3 Others: Higher Highs, Declining RSI

Nasdaq stocks hitting higher highs but showing technical negative divergences may be a problem for shareholders. These 5, from diverse industry sectors, brought in enough buyers last week to establish yearly new highs — but without the confirmation of a key technical indicator.

The relative strength index, pioneered decades ago by analyst Wells Wilder, is not going along with a series of higher high prices in some celebrated names. Although much is made in the financial media about rallying stocks, the RSI, as it’s known, is giving pause to those who gauge what it could mean.