The S&P appears to be on its way toward 1576, the high in 2007. Looking at the daily and weekly charts, everything is pointed up and now that it took out resistance at the Sept. 2012 highs, and the debt ceiling issue has been put off for 3 months, or appears to be… I don’t see much to stop it. The ADX is not in overbought territory so there most likely wont be a pull back for a while yet.
And on a weekly basis all indicators are pointing up, what appears to be the beginning of an uptrend. I would not want to be short the mkt here. Definitely not overbought territory.