The JSE Life Assurance Sector is approaching overbought levels relative to the JSE Top 40 Index. Considering the distance of the ratio chart vs the 200-day SMA, sector trades 13% above the moving average. This is the highest level since 2019 (as far the current data goes back). Why is this chart relevant? For traders who currently hold life insurers or are overweight the sector, the distance vs the 200-day SMA may indicate an overextension and that a pullback from at or around current levels is possible. Alternatively, if for investors who have been overweight the sector, it may be an opportunity to shift to an equal-weight position.