The market worked off some of the overbought conditions I mentioned yesterday.  The NASDAQ McClellan Oscillator finished down 7 points to a +62.  This is still extremely overbought, I would love to see three more days like this.  Here is a visual look at the oscillator.

Top-rated stocks are still breaking out or climbing to new highs.  (V: 68.55 -2.95) which mentioned yesterday broke-out.  And here is IBD on (GMCR: 33.58 +2.37).

Green Mountain Coffee Roasters (GMCR) swung past an 88.75 buy point from a base-on-base pattern in fast action. Last week, it cleared the base intraday but couldn’t hold the gain. After Monday’s action, the stock is now 4% past the buy point.

A stock that Bentley mentioned back in 2007 has come back to life.  Here is what IBD had to say.

Blue Coat Systems (BCSI) ran up nearly 5% to a two-year high. It cleared a 31.15 buy point from a cup base. The maker of network security products saw earnings fall 32% in 2009, but a comeback is expected this year. Analysts see profit rising 52% in 2010.

I do not know how much further we can go without some sort of rest or pullback. It is certainly possible but I would not call it is likely.  I will let the market decide.