If you're a momentum trader, two financial stocks might be waving red flags right about now. As of January 16, 2026, Nomura Holdings Inc. (NMR) and Mizuho Financial Group Inc. (MFG) are showing the kind of extreme overbought conditions that often precede a cooldown.

The Relative Strength Index, or RSI, measures momentum by comparing how strongly a stock moves on up days versus down days. It's basically asking: has this thing run too hot, too fast? When the RSI climbs above 70, traders typically consider an asset overbought—a signal that a pullback might be around the corner. Both of these Japanese financial giants are well past that threshold.

Nomura Holdings: Running Hot After Strong Earnings

Nomura Holdings (NMR) posted better-than-expected quarterly earnings back on October 28, and the market hasn't forgotten. The stock has climbed roughly 15% over the past month, pushing it near its 52-week high of $9.47. Shares closed at $9.39 on Thursday, up 1.4%.

Here's the concerning part: Nomura's RSI currently sits at 86.1. That's not just overbought—it's extremely overbought. The momentum score from stock ratings sits at 90.75, confirming what the technical indicators are screaming: this rally has been relentless, and gravity tends to reassert itself eventually.

Mizuho Financial: Charitable News Amid Technical Warnings

Mizuho Financial Group (MFG) has followed a similar trajectory, gaining about 15% over the past month and approaching its 52-week high of $8.59. Shares rose 1.2% to close at $8.49 on Thursday.

On January 5, Mizuho Americas announced $1 million in grants through the Mizuho USA Foundation. "We are proud to offer signature grant programs that support innovative organizations and initiatives that enable young adults to gain technology skills, discover career pathways, and build the tools needed to secure sustainable employment," said Lesley Palmer, Head of Community Relations and President of the Mizuho USA Foundation. "By partnering with outstanding nonprofits who are at the intersection of technology and education, we can help put more young adults on a path toward professional achievement and financial stability."

Good news aside, Mizuho's RSI reading of 84.8 tells a different story from a technical perspective. Like Nomura, it's trading at levels that historically precede consolidation or correction.

For traders who respect momentum indicators, these readings suggest caution. When stocks run this hard this fast, the question isn't usually whether they'll pull back—it's when.