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A trader looks up at charts on his screen just before the end of trading for the day on the floor of the New York Stock Exchange, November 18, 2013.
A trader looks up at charts on his screen just before the end of trading for the day on the floor of the New York Stock Exchange, November 18, 2013.
(LUCAS JACKSON/REUTERS)

Overbought and oversold stocks: 'You were warned'

Relative Strength Index, my preferred technical measure, did a terrific job last week predicting weakness in then-high-flying precious metals and energy stocks. In the past five trading sessions the S&P/TSX Composite index has fallen back 0.4 per cent and the current RSI for the market as a whole is 63, further away from the 70 sell signal.