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:
Disclosure: The author is long GOOG, and UTX.