Today's rally pushed the S&P 500 to another new bull market high, and the index is now up 10.29% since making its post-election closing low on November 15th. As we highlighted yesterday, the S&P 500 is now extremely overbought, and the percentage of individual stocks in the index that are overbought is up to 79.6% as well.
Below is a chart showing the percentage of overbought stocks in the S&P 500 on a daily basis since March 2007. As shown, the reading is now as high as it has been at any point over the last five years with the exception of late October 2011. With futures up after hours on strong earnings reports from IBM and Google (GOOG), we could certainly cross above 80% tomorrow. As you can see, though, once the reading gets up to these lofty levels, it typically doesn't stay there long.