MarketWatch article - Market is Extremely OVERBOUGHT
By Kevin Haggerty
The S&P 500 has advanced +17.2% to the April 2 1574 high from the November 16, 2012, 1343 low, having taken out the 1365.15 previous bull-cycle high close, but not the 1576.09 October 11, 2007, bull-cycle high.
As indicated by the monthly 5 RSI on the S&P 500 SPX +0.64% chart, the market is extremely extended at 87.40, and the risk/reward in that zone is obviously not positive, as you can see on the chart for the past two bull cycles in this secular bear market that started with the 2000 top.
Technicals mean nothing in this market. New money, about 5 billion every trading day is created to buy stocks. Leverage, in dollar terms will rise as stock prices go higher(you can borrow more as they go up). Obama has spoken "make the market go up and I won't prosecute any criminals gaming the system".