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NEW YORK (TheStreet) -- The Santa Claus rally continued on Friday with the major indexes setting all-time closing highs.

The DJIA closed up 23.50 points to finish at 18,053.71, the S&P 500 was up 6.89 at 2,088.77 and the Russell 2000 rose 8.42 to finish at 1,215.21. The Nasdaq was higher by 33.39 points to finish at a 2014 high of 4.806.86.

The markets closed Friday with 2014 highs on less-than-average volume. The S&P 500 Trust Series ETF (SPY) - Get SPDR S&P 500 ETF Trust Report volume was over 53 million shares, one of the lowest volume days of the year. The SPY volume on a year ago on Dec. 26 came in at 63.2 million shares traded, or 10 million shares more than this year. 

There continues to be many negative indicators as this stock market continues to defy the economic realities. For instance, U.S. consumption is up more than incomes, driven by the new subprime lending in automobiles.

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The 5% GDP number, which was stellar, has grown at an annualized 2.4% rate through the third quarter. GDP will likely end the year around 2.6% year over year.

Turning to my internal algorithm signals, it appears this 1,000-plus-point gain in the DJIA and more than 110-point gain in the S&P since Dec. 16 will have created an overbought condition with a higher open on Monday. It seems the Russell 2000 is currently in extreme overbought territory.

As far as individual large-cap stocks are concerned, Apple (AAPL) - Get Apple Inc. Report , Facebook (FB) - Get Meta Platforms Inc. Class A Report , GoPro (GPRO) - Get GoPro, Inc. Class A Report , Netflix (NFLX) - Get Netflix, Inc. Report and Pandora (P) appear to be in overbought territory on a higher open Monday.

Thus, traders should stay cautious and be ready to sell in the near future.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.