The $SPXA50R is showing stocks to be highly overbought. When this is showing a reading of greater than 90%, there is a high level of risk in long positions. The market can still move higher but conditions are ripe for short-intermediate term trend change.







The Wilshire Index(this index has a broad representation of the market)is also approaching a level of resistance with the upper blue trend line. Whether the line holds remains to be seen but considering the level of bullishness in the market noted by the $SPXA50R, it would be fitting to see the Wilshire retreat.