April 6 2009 8:15 AM EDT

S&P begins week with multiple uptrends intact, potentially overbought

After four straight weeks of gains, the S&P still has trends intact on short term time frames. Many traders are marking this an overbought market, which seems logical because there are clear support levels 3 to 5% below Friday's close. The gap at 808.25 on ES is a clean target. Also the slower trend line at 785 would most likely be supported on a first test. Charles Kirk changed his bias neutral late last week. I am anticipating weaker strength in April and a rolling over of the upward momentum.

Since the rally began, ES has managed to move above the EMA(200) on the 1, 10, and 100-minute time frames. On the daily chart this average sits in the upper 900's. The daily EMA(200) is the most watched indicator of trend, and on that time frame the trend is still down.