In this morning's analysis, I am presenting another red flag on this 'feel good' rally that has given hope to the many 'buy and holders' out there that they may yet be vindicated.  As I stated Thursday, I am not saying that this rally should be ignored, but it needs to be evaluated as to how it holds up during its first powerful pullback that may be much closer than many think. 

Notice in the daily chart of  the Dow below that time cycles are clustering together in the April 7 - 10 range.  Those clusters are calendar day counts forward off of the October 11, 2007 high, the October 10, 2008 spike low, and the January 6, 2009 high.  There is another, and very important Fibonacci time cycle projection (in red) that comes in on April 10 as well.  This projection is a 61.8% time retracement of the January - March decline.  

Now notice that the Dow price has retraced 61.8% of the January - March decline.  That gives us a squaring of price and time.  A 61.8% time retracement along with a 61.8% price retracement.  This is a very powerful combination that can cause sharp reversals. 

Now note at the bottom of the chart how the momentum indicators have not confirmed this last push higher whatsoever.  The RSI has stalled at 60 which is a common topping area for bear market rallies.

Combine this chart with the rising wedge pattern in the Nasdaq and S&P 500 presented on Thursday and this shows how overbought and vulnerable this advance is right now.