The S&P/TSX Composite appreciated 1.2 per cent for the trading week ending with Thursday’s close and stands 18.1 per cent higher year to date.
Relative Strength Index (RSI) puts the index at the high end of neutral technical territory – the 60 level is much closer to the overbought RSI sell signal of 70 than the oversold buy signal of 30.
There is only one stock trading at attractive technical levels according to RSI this week - AG Growth International Inc. - and it’s barely oversold with a reading of 28.
There are 20 benchmark stocks trading with RSI levels indicating higher risk of a temporary price correction. Defensive names dominate the list which is led by Metro Inc. and Dream Office REIT. Other widely held names trading at frothy RSIs include Brookfield Infrastructure Partners LLP, Canadian Utilities Ltd., TMX Group Ltd., Inter Pipeline Ltd and Hydro One Ltd.
There are 17 S&P/TSX member companies showing strong price momentum by hitting new 52-week highs and they are ranked by market capitalization in the accompanying table. Brookfield Asset Management is the biggest company making new highs and BCE Inc., Thomson Reuters Corp. and Sun Life Financial close behind.
For the second week in a row, there are no index constituents hitting new 52-week lows.