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A Bay Street sign, a symbol of Canada's economic markets and where main financial institutions are located, is seen in Toronto, May 1, 2013.
A Bay Street sign, a symbol of Canada's economic markets and where main financial institutions are located, is seen in Toronto, May 1, 2013.
(Mark Blinch/Reuters)

TSX approaches frothy, overbought levels

The S&P/TSX Composite jumped 2.0 per cent for the week ending with Thursday’s close. The entire benchmark is now very close to overbought, technically vulnerable levels, according to my favoured short term technical indicator, Relative Strength Index (RSI). The TSX Composite’s RSI reading of 67.0 is only a touch below the overbought, sell signal of 70.