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TSX technical analysis suggests investor overconfidence

The first technical look at the S&P/TSX Composite in 2014 suggests that domestic investors are starting the year in a confident mood – probably too confident.

It’s generally a good idea to ignore market behaviour during the holidays because of low volume but the stock prices still count. The entire benchmark breached the relative strength index sell signal of 70 late in the year and the results are still apparent in the lack of buying opportunities now.