Characterized by excessively high prices owing to prior heavy buying and a concomitant rise in prices.
An overbought stock market.
A trading condition in which a stock or other financial instrument has had a quick run up in its price, making the price higher than it should be. A market with prices that are too high is said to be overbought, and the prices may decline in a correction. The opposite is oversold.
(finance) A stock or commodity market condition where there has been significant trading bidding up prices to higher levels, levels which seem overextended or excessive on a short-term basis.