One of the indicators I use that has provided a fairly accurate signal for overbought/oversold conditions on the S&P500 has been the percentage of stocks trading over their respective 50, 150 & 200 day moving averages. In this chart I've annotated, note the overbought (SELL) conditions back in 2007 and then the extremely oversold 'Trifeca' BUY signal March of 2009. This week we got a break of the 75% level on the $SPXA200R a SELL. The $SPXA150R has already been several days in Sell mode...however the 50 day percentage ($SPXA50R) is now in oversold, a shorter term signal. What does this all mean? The $SPX should see a short term reversal soon, perhaps a bounce off of the 200-ma around 1020/1025. Watch to see if the 200 percentage gets back above the 75% level, if that occurs. All in all the markets are more likely going to be choppy and see side ways to lower trending direction. Obviously the weaker dollar rally has ended (for now) as the weaker Euro has hurt equities. I'm watching the 136 level and for a bounce along with the 81 level as resistance near term on the dollar. This week should bring more clarity & direction as to the markets uncertainty.