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The S&P/TSX Composite staged a nice recovery in the five trading days ending with Thursday's close, returning 5.2 per cent. The benchmark is still in neutral territory according to the Relative Strength Index technical analysis indicator, at 61, well above the buy signal of 30 but sneaking up on the technically oversold, sell signal of 70.

The list of technically attractive, oversold TSX stocks is an interesting, eclectic bunch with no real sector emphasis. Mortgage insurer Genworth Canada Inc is near the top of the list, joined by Bombardier Inc., Canaccord Genuity Group Inc., TMX Group Ltd. and Jean Coutu Group Inc.

I picked the S&P/TSX benchmark itself for this week's focus chart because, for one reason or another, I'm not comfortable pointing out any of the oversold stocks at this time.

The first thing evident from the chart is the extreme levels of volatility in the past six months. The middle of October 2014 saw the benchmark at extraordinarily oversold RSI levels near 14. This was by a huge margin the most oversold level for the Canadian market in the past two years.

The subsequent market rally from Oct. 15 to Nov. 11 clearly failed and the TSX hit a "lower low" (relative to October) of 13,705 in mid-December.

Boosted by the Bank of Canada, the TSX is again staging a rally. It would be a bullish sign if the market can get above the November high of 15,100.

Investors will have to watch in case the market to become overbought and technically vulnerable in the next few sessions. The recent high levels of volatility, not just in Canada but around the world, implies that an RSI reading above 70 should be taken seriously, and investors should be more cautious, if only for a few days.

Strong rallies for Cott Corp and BCE Inc. have those stocks well into overbought territory and seemingly poised for a correction. Four REITs – Calloway Real Estate investment Trust, Cominar Real Estate Investment Trust, Canadian Apartment Property REIT and H&R Real Estate – also look extended.

As always, fundamental analysis should be part of all investment decisions. Technicals are widely used for a reason – they can be excellent identifiers of attractive buy and sell levels – but are not enough on their own.

Follow Scott Barlow on Twitter @SBarlow_ROB.