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The S&P/TSX Composite fell 3.0 per cent for the trading week ending with Thursday’s close and sits 10.4 per cent lower for 2020.

In terms of Relative Strength Index (RSI), the benchmark is in technically neutral territory at 47, although slightly closer to the oversold buy signal of 30 than the overbought RSI sell signal of 70.

The situation with individual index member stocks is absolutely bizarre this week. Of the four major categories we usually cover – attractive stocks oversold according to RSI, overbought benchmark constituents by RSI, stocks hitting 52-week highs and stocks hitting 52-week lows – there is only one stock to talk about.

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There are no oversold stocks by RSI this week. Closest, and they’re not really that close, are Ritchie Brothers Auctioneers Inc. and Knight Therapeutics Inc. with readings of 33 and 34 respectively.

There is one technically vulnerable index company trading above the RSI sell signal and that’s Enghouse Systems Ltd.

Even there, the RSI is barely over the sell signal with an RSI of 71.0. CargoJet Inc. and Martinrea International Inc. are getting close to overbought levels, each with RSIs of 69.

The only explanation for the strange results this week I can think of is that the market is churning, with no sectors showing either clear, sustained leadership or consistent underperformance.

This week's overbought stocks

RSIPrice200DMAReturn 1W %Return YTD %PE Ratio TTMPE Ratio Fwd
ENGH-TENGHOUSE SYSTEMS LTD70.8567.8646.728.4041.4744.2639.11

Source: Bloomberg

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