Dow Jones and S&P500 indices - the potential has emerged for technical top formations / sell signals to be generated

Dow Jones and S&P500 indices - the potential has emerged for technical top formations / sell signals to be generated. The key US indices have been extremely overbought on a momentum basis, which has been a key reason for the cautious technical view relating to the sustainability of the US market rally. Parallels have existed between the recent overbought US market conditions to that which had prevailed in late 2007. However, to indicate the timing of when the (overbought) US market has turned, technical top formations need to be generated on the key US index charts. The potential has now emerged for this to occur. A further sell off is still required to break key support levels / trigger the US index sell signals.