The S&P/TSX Composite just witnessed a remarkable surge, climbing 1.7% for the trading week ending Friday! However, as markets heat up, some stocks are raising eyebrows with their extreme positions.

🔍 **The Oversold Diamonds**: Four index stocks are signaling potential buying opportunities with their Relative Strength Index (RSI) dipping below the magic number of 30, indicating they are oversold. Leading the pack is Algonquin Power and Utilities Corp. with a surprisingly low RSI of 26, closely followed by Boralex Inc. also at 26, Atco Ltd. at 29, and Empire Co. Ltd. rounding out the group with an RSI of 29. These could be the perfect time to snag shares!

🚀 **The Overbought Giants**: On the flip side, the market is buzzing with overbought stocks—40 in total! Topping this list are heavyweights like Barrick Mining Corp., Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, and Agnico-Eagle Mines Ltd. These stocks are exhibiting an RSI well above 70, suggesting they may be ripe for a pullback.

📈 **Momentum Makers**: Meanwhile, a whopping 25 benchmark constituents are riding the wave of strong price momentum, hitting fresh 52-week highs. Among these shining stars are industry titans such as Royal Bank of Canada, Toronto-Dominion Bank, Brookfield Corp., Enbridge Inc., and once again, Bank of Montreal. Keep your eyes peeled; these stocks are on a roll!

In a market filled with potential pitfalls and opportunities, staying informed about these oversold diamonds and overbought giants could make all the difference in your investment strategy!