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Was breadth bullish because the financials were all positive? I ask because there wasn't much else that was bullish about Monday. Well, perhaps I ought to phrase that differently.

The fact that there seems to be buyers down below whenever we fall is bullish. And breadth has kept pace with the rally, so that too is bullish. But that has turned sentiment too bullish for my taste.

The International Securities Exchange's equity call/put ratio was 203% Monday. That is pretty high. For the bulls the last time we had such a high call/put ratio was the day before the lows in early March. However, the two previous times were Dec. 30, 2008, which gave us a few more trading days on the upside before we sunk in earnest, and May 16, 2008, which was the spring high in the S&P 500 last year.

The Chicago Board Options Exchange's equity put/call ratio confirmed this bullishness by chiming in at 50%. The previous reading in this area was 51% on Sept. 19, 2008. For those who need a refresher that was the second day in September when the government announced the Troubled Asset Relief Program and the ban on short-selling of the financials. You probably don't need me to remind you that this wasn't a great time to buy.

Prior to that we had a reading of 39% on Dec. 20, 2007, which also wasn't a great time to buy. And prior to that we had a reading of 45% on Oct. 31, 2007, which turned out to be the high in Nasdaq.

If you would prefer the bullish spin on this, then look to March 23, 2009, when we had a reading of 53% which promptly led to a 16-point decline in the S&P the very next day. Of course, we were only two weeks off the lows back then, not five weeks and 25%.

So I have a problem with all the bullishness up here. And the fact that it arrives as we are reaching a maximum overbought reading on the oscillator on Wednesday, and we are approaching a maximum overbought on the 30-day moving average of the advance/decline line just post expiration, makes me more cautious.

Let me add one more potential problem for the market: the utilities. They haven't participated in the rally for several weeks now and Monday they showed very little sign of even trying to rally late in the day with the rest of the market. And keep in mind they were red on Thursday so they failed to participate then too.

What concerns me about the utilities is that they tend to be leading. You might recall what a fuss I made over them last summer when they were failing. Line A (on the chart) was broken in late August and we know how that turned out. Then the utilities couldn't get through Line B in the fourth quarter rally and in January they headed lower once again. Now we have them banging their heads up against resistance and they haven't been able to breach this resistance area in this entire rally.

Therefore, while the uptrend in the market is still intact, I believe we are heading toward a correction. There are too many signs building that say we are overdue for one.

For more explanation of these indicators, check out The Chartist's primer.

Know What You Own: Meisler mentioned utilities. Some utility stocks include AES Corp. (AES - Get Report), Southern Co. (SO - Get Report), Duke Energy (DUK - Get Report), NiSource (NI - Get Report), Dominion Resources (D - Get Report), Consolidated Edison (ED - Get Report) and Exelon (EXC - Get Report).

Helene Meisler writes a daily technical analysis column and Top Stocks. For more information, click here. Meisler trained at several Wall Street firms, including Goldman Sachs and SG Cowen, and has worked with the equity trading department at Cargill. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback; click here to send her an email.