April 28

Despite the rally to new highs in the

Dow

and the

S&P 500

yesterday, the market is still in an overbought condition, which means momentum in individual stocks will continue to wane with each push higher. In addition to the overbought reading, the number of stocks at new highs remains well below last week's peak reading of 173. This tells us fewer stocks are managing new highs along with the market.

These statistics, along with the too-bullish sentiment (and for more on this, please see my last

column), continue to argue for a correction in the markets in the near term.

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.