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The market has had a very nice run since bottoming in March. I still believe that stocks will be higher at year end, and that growth stocks will continue to lead.

But as I look at the charts of leading stocks, I can't help but come away with the concern that many stocks are simply too extended, and moving into overbought territory.

Whether or not this means we are due for a correction, investors should be careful about establishing new positions in stocks that are extended, as you could get whipsawed fairly quickly.

Here are some examples of some stocks I was looking at that support my thesis:

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RIMM 5-month chart

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FSLR 5-month chart

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JASO 5-month chart

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RVBD 5-month chart

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GRMN 5-month chart

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GOOG 5-month chart

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UTX 5-month chart

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BHP 5-month chart

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BIDU 5-month chart

Disclosure: The author is long GOOG, and UTX.

Source: Are Stocks Over-Extended?