Australian Stocks May Be Riding Too High: Chart

After having its best month in five years, Australia’s S&P/ASX 200 Index is sending bearish signals. More than 80 percent of its members closed last week above their 200-day moving average, after that metric hit a six-year high on Aug. 1. That same day, almost a quarter of the stocks’ relative strength indexes were in oversold territory -- the most since February 2015 -- and now many have fallen out of that zone, which technical analysts consider a sell signal.

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