The S&P/TSX Composite had a terrific trading week to Friday’s close, rising 2.6 per cent, and is now 8.7 per cent higher for 2021.
The benchmark is, however, approaching overbought territory according to Relative Strength Index (RSI). The index’s RSI of 65 leaves it far closer to the sell signal of 70 than the technically attractive range below the oversold RSI buy signal of 30.
There are two oversold benchmark companies this week – Kinaxis Inc. and Innergex Renewable Energy Inc. – and no other stock is anywhere close.
The list of overbought, technically vulnerable S&P/TSX Composite stocks is huge at 47 members. National Bank of Canada and Canadian Imperial Bank of Commerce are the frothiest stocks in the index and Bank of Nova Scotia is also among the top ten. Energy names are also well represented near the top of the most overbought list with Secure Energy Services Inc., Imperial Oil Ltd, Inter Pipeline and Vermilion Energy Inc.
There are, once again, no index constituents making either new 52-week highs or 52-week lows. The latter is not surprising, but we must be close to having a long list of new 52-week highs if the rally continues.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.