Toppy Markets Confound Technical Analysts

One thing most technical analysts agree on is that the market is currently overbought. What they can't agree on, however, is whether this bodes ill for stocks.

The stock market has moved up sharply over the past two months, with both the Dow and S&P 500 climbing about 9% and the Nasdaq up 10% since hitting a low on Nov. 18.

"The market has reached a technical condition that has oftentimes preceded a market pullback, or at the least an extended consolidation phase," said Francois Trahan, chief investment strategist at Bear Stearns. ...