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The S&P/TSX Composite index spent a week treading water and the benchmark, while still technically extended, is no longer above the overbought target according to our preferred measure, Relative Strength Index (RSI). Other than that, it was a week when the rich got richer and the poor poorer – overbought stocks remained strong and, aside from Corus Entertainment, oversold stocks showed few signs of life.

The RSI for the TSX fell below the 70 level that indicates overbought, technically extended conditions but at 68, investors should remain cautious about their entry points.

Pretium Resources Inc remains oversold after falling 10 per cent per cent in the wake of some unhelpful attention from the Financial Times. Corus Entertainment Inc escaped oversold territory with a 2.7 per cent rise. New additions on the oversold list are Westport Innovations Inc and Bonavista Energy Corp.

There are still 34 stocks (14 per cent of the index) above the 70 RSI overbought signal which suggests that conditions remain frothy. The overbought list is dominated by financial names including (in order of most to least overbought) CIBC, TD Bank, National Bank, Home Capital Group Inc., Power Financial, CI Financial, AGF Management, Canadian Western Bank, Royal Bank and Sun Life Financial.

On one hand, the big five banks can stay overbought for extended periods and in this country, it's very rare for investors to regret buying bank stocks over the longer term. For the market overall, however, it's disconcerting for the market to be showing this much optimism ahead of earnings reporting season. It raises the possibility of disappointment and also the likelihood of profit-taking when results are good.

I don't pretend to own a crystal ball, but I wouldn't chase the market here. Commodity prices continue to slide lower and U.S. economic data remains generally weak. These trends suggest a slower global growth backdrop that is not yet reflected in the domestic stock market.

To view the tables on mobile devices, click on the following:

Oversold S&P/TSX stocks for the week ending Nov. 1: http://bit.ly/19XaiW8

Overbought S&P/TSX stocks for the week ending Nov. 1: http://bit.ly/16sf6T1

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