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Overbought - Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. See: Heavy. Antithesis of oversold.
In technical analysis, it is a market in which the volume of buying that has occurred is greater than the fundamentals justify.
A term describing a market in which excessive buying has created an artificially high level. By implication, someone who thinks the market (or a particular company) has been overbought, also believes that it is due for a downward correction.