The 60 min SPX chart below shows that 4 different RSI indicators are at extreme short-term overbought levels. A 60 min RSI-21 doesn't get close to 70% very often.

The PPO portion of the Short squeeze pattern has rolled over and now has a negative value. if you plugged in the NDX, Indu, or MID you would see the same pattern. At the momentthe NDX has an RSI-2 value of 98.29% - the 3rd consecutive day above the 90% level. In my 11+ years of RSI-2 data, 3 days above the 90% RSI-2 level, with a current reading above 98%, has a high probability of a short-term pullback. Of course, there is no guaranteethat it will do so immediately

The last time the major indexes had three 90% RSI-2 up days in a row was from the Dow starting on March 31st. After the 3rd day, April 2, the major indexes did pull back to RSI-2 levels in the 5-7% range by April 7th.

But back in February the NDX remained above 90% for 7 consecutive days before pulling back. This was part of the 20 consecutive days that the SPX stayed above its 9 day line that resulted in the "exhaustion short trade" that Matt let us know about.

To me this just doesn't feel like the same market that we had back then in Feb. A trending market back then has turned into a narrow range chop, in my view. At yesterday's close the NAMO also was at an extreme overbought condition. It too was right in early April, and wrong back in February.

But then I'm the guy that prematurely (this time at least) went short RUT last Friday with a scaled in position (fortunately) that I added to at yesterday's close.  For those of you that didn't read the latest Jack's Wrap column that I posted on Monday, the Bull-Bear spread was near the 40% sell level as of last Weds. While this isn't a sell signal by itself, a reversal from these levels, when it eventually comes, will likely be quite unpleasant.

http://stockcharts.com/h-sc/ui?s=$SPX&p=60&st=2014-05-01&en=(today)&id=p42291792462&listNum=1&a=228751055