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(Brian Jackson/Thinkstock)

Overbought TSX ripe for a selloff

For readers in a hurry, here’s the takeaway from this week’s technical analysis of the S&P/TSX Composite: Don’t buy anything here unless you intend to stare at your quote screen constantly afterwards, with your finger over the “sell” button.

Energy and precious metals stocks have driven the Canadian benchmark to significantly overbought levels according to Relative Strength Index (RSI). The entire TSX is not just over the RSI sell signal of 70, it’s almost at 80.