The Daily Chartist

April 26

With the market currently in an overbought position, the upside will become much more of a struggle for a while. The

Nasdaq

has rallied over 10% in four trading days. Wouldn't you need a rest if you ran up a flight of stairs that fast? I know I'd need to catch my breath before pushing forward again.

A breather at this point would be considered healthy; it would be a way for the market to have a rest and gather its strength so it can resume its climb. If it keeps climbing those stairs this fast, it will become exhausted and more vulnerable. A market that paces itself is much healthier than one that runs out of steam. I continue to believe this market needs a rest and that a correction will set in sometime over the next couple of weeks.

New Highs and New Lows

Overbought/Oversold Oscillator

Cumulative Advance/Decline Line

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in the stocks mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

KPMHSM@aol.com.