U.S. stocks are currently enjoying a breakout rally, but Nvidia's 53% gain since April 15 is raising concerns about potential pitfalls. With Friday's close at $131.88, Nvidia's relative strength index (RSI) is at 80, signaling that the stock may be overbought. This doesn't necessarily reflect financial issues within the company, as Nvidia remains highly profitable. However, the RSI suggests that the stock could experience a downturn due to excessive investor demand. Similar trends are observed in other stocks like Eli Lilly, Apple, Costco Wholesale, and Arm Holdings, all showing overbought signals. Understanding RSI levels can help investors navigate market volatility and make informed decisions. By closely monitoring RSI data and being prepared for potential pullbacks, investors can seize opportunities amidst market fluctuations.