In the past few weeks, there has been a hot market rally in equities.  This has sent the Dow Jones (DIA) and S&P 500 (SPY) to new heights. Eventually though, this rally must overheat. We may be in for a massive blow up.

Looking at both the Dow and S&P 500 ETFs, we can see that both index funds have blow through the upper end of their bollinger bands and both ETFs are in the upper end of their relative strength indices. Technical traders would tell you that this is an indication of overbought conditions. A correction is due.

Here's the S&P 500 (SPY) chart.

Here's the Dow (DIA) chart.

Meanwhile, extreme greed appears to be gripping the markets.