Intercontinental Exchange and CME among week’s most oversold stocks on perpetual futures concerns

Shares in both exchange operators fell sharply, pushing their relative strength indexes to 24.4 as investors worried newer products such as perpetual contracts could disrupt traditional exchange businesses.

Summary

Intercontinental Exchange and CME were among the week’s most oversold stocks, with both showing relative strength indexes of 24.4, below the 30 threshold often seen as signaling oversold conditions. CME fell 10% this week and ICE dropped more than 7%, leaving both down by double digits in June. The declines reflect investor concern that perpetual contracts and other newer products could disrupt the business models of traditional exchange operators, extending pressure beyond earlier worries over a regulatory spat involving perpetual futures.

Terms & Concepts
  • relative strength indexes: A momentum indicator used to gauge whether a stock may be overbought or oversold based on recent price moves.
  • oversold: A market condition in which an asset has fallen sharply and may be trading below levels implied by recent momentum.
  • perpetual futures: Derivatives contracts without an expiry date that let traders maintain positions continuously.