Piper Sandler: Rotation strategy is timely, small-cap stocks present buying opportunities in the US market volatility.

Piper Sandler's chief market strategist Craig W. Johnson stated that despite the overall volatility in the U.S. stock market, major indexes are still in an uptrend and investors should continue to see "opportunities to buy small-cap stocks, especially value stocks." In a report, Craig W. Johnson said that "while the overall volatility around earnings, inflation, and tariffs has increased, we don't think it's time for investors to retreat. Instead, it's time to rotate." The Russell 2000, which is dominated by small-cap stocks, has risen 2.9% from a month ago, with about 2.4% of the gain coming in the past five days, Johnson said. The index has pulled back from resistance above the 50-day moving average, and its relative strength index (RSI) has "come back to the midline to add positions on confirmation of a top break," he said. When the RSI value is above 70, it indicates that the market is overbought and may face a correction; when the RSI value is below 30, it indicates that the market is oversold and may see a rebound. Here is a list of some stocks that were overbought and oversold as of Tuesday.