NEW YORK (TheStreet) -- It's now very likely that the stock indexes are setting up for a quarterly close next Tuesday in the green.

After four down days in a row, the S&P 500 index closed higher on Friday with a 4.87 point gain to end at 2,061.02. The DJIA was higher by 34.43 to finish at 17,712.66. The Nasdaq gained 27.85 points to close at 4,891.21 and the Russell 2000 closed up 8.42 at 1,240.40.

The Nasdaq was helped higher by a report Intel(INTC) - Get Report was in talks to buy another chip maker Altera Corp(ALTR) - Get Report.

From a technical point of view, it seems that a quarterly close next Tuesday in the green will set up the stock indexes for some serious overbought conditions. The risk in the stock market has now become extreme.

As mentioned in Thursday's article, Adobe Systems(ADBE) - Get Report had an oversold signal and closed higher on Friday. 

One large cap stocks that has a current oversold signal that should move higher early next week is E.I.du Pont de Nemours(DD) - Get Report.

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