The S&P 500 Index has had a strong start to the year so far up 4.65% through January 22. 






Source: StockCharts.com

However, the party may be getting ready for at least a little pullback as the entire market has entered overbought territory with the Relative Strength Index (RSI) over 70.  In addition, as seen in the chart below from Bespoke Investment Group, almost 80% of individual stocks in the S&P 500 Index are overbought.  Prior history says it doesn't stay this overbought long. 

These are more causes to worry in addition to those mentioned in Why I am worried on the Humble Student of the Markets blog yesterday.  The overbought condition can be worked off either through a correction in the market, or by moving sideways for a while.  The question is what will the market do?