The S&P/TSX Composite climbed another 1.3 per cent for the week ending with Friday’s close and now sits 11.2 per cent higher for 2021. The benchmark as a whole is now overbought and vulnerable to a temporary pullback according to Relative Strength Index (RSI). The index RSI of 70.3 is marginally above the overbought sell signal of 70.
There are no index stocks trading at attractive technical levels below the RSI buy signal of 30. Cascades Inc. is closest at 31 but after that there’s nothing until Canopy Growth at 36.
There are 20 overbought benchmark constituents trading with RSIs above the sell signal of 70, fewer than I would have expected with the index itself overbought. Stantec Inc., Waste Connections Inc., and Great-West Lifeco are the three most technically extended stocks in the benchmark.
Elsewhere the list is dominated by REITs. First Capital REIT, Interrent REIT, Crombie REIT and Canadian Apartment Properties REIT are all on the overbought list.
There are no S&P/TSX Composite stocks making new 52-week highs or lows.
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