The Financial Post reports in its Wednesday edition both the S&P/TSX composite and S&P 500 indexes are approaching oversold levels, which may present a buying opportunity. The Post's Jonathan Ratner, writing in Trading Desk, quotes RBC Capital Markets technical analyst Javed Mirza as saying both benchmarks have staged multimonth rallies after hitting oversold levels during the past three years, based on the firm's data. He said the Toronto Stock Exchange looks poised for a near-term countertrend rally with first resistance near 15,238, followed by the 50-day moving average near 15,386. Mr. Mirza also pointed to extreme short positions in the U.S. Dollar Index (DXY) by the so-called "smart money" -- commercial hedgers -- saying the DXY confirms the long-term trend is up. However, these extreme short positions remain suggestive of a near-term squeeze on DXY long positions. "A pullback in the DXY is positive for commodities," Mr. Mirza says. "Materials and energy stocks trading near intermediate-term support and combined with the pending positive of a corrective phase on the DXY appear to be at inflection points." The TSX closed Tuesday at 14,960.51, down 16.41 points.