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10 overbought stocks ready to drop

Stocks drop Market drop
Geography Photos | UIG | Getty Images

The strongest three-month rally for stocks in four years placed a group of high-flying names at risk of a pullback, market watchers warn.

After a choppy start to 2016, the S&P 500 is now up more than 13 percent in the past three months, logging its largest gain since March 2012. The U.S. equity benchmark currently trades within 2 percent of a record price reached last May.

As stocks hover near the highs of the year, however, not everyone is buying into the rally.

Mark Newton, managing member and founder of Newton Advisors, notes that a few "troublesome factors" such as stocks' faltering momentum and market breadth, could lead to "at least a temporary trend reversal."

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