SP-500: Its overbought?

Hello my Investors, Traders and Reader Friends. The market drop on Friday, has, from my point of view two explanations. On the one hand, Wall Street winds up consistently since late December. Technically, the market is overbought and needs to "take a breather." Furthermore, last week we received a lot of information about Greece and its austerity plan. Until Sunday, most of the news agencies report that this issue has not yet been completely resolved. Clearly, this issue adversely affected the market. Especially if we consider that "the market" is heavily influenced by the political news. Consequently, an overbought market (which must be corrected downward) can be powered by bad political news (and economic) and transform this situation much more critical than it should be.
Some important analysts and investors as Larry Levin, are concerned (even suspected) at low volumes traded in the stock market during the current rise in the market. The suspicion is that the "Smart Money" is not taking part in this rise and therefore one would expect a significant correction. In this sense, the market performance on Friday is a first warning to investors. The volatility went up significantly. The VIX - CBOE MarketVolatility Index Climbed 11.59%. Stocks comprising mainly the major indices fell (in the case of the DJ-30, only one stock rose, whereas 29 showed falls). Finally, the market decline on Friday was of a magnitude not appreciated since mid-December. In terms of technical analysis, there is also some negative aspects. For example, in the case of SP-500, MACD is very close to passing into the red (daily frame) and the indicator Stochastics is on the level 93. This condition would indicate overbought yet. there is a tendency to fall. On the other hand, the SP-500 closed in 1.342 points, falling just over 9 points. The present level of SMA 18 days is 1.326 points, or 16 points below the current level. Would not it illogical that the SP-500 "made ​​the test of resistance" to the level of SMA 18 days. Below is the SMA 50 days, which is located on 1.282 points, but first we must see what happens with the test of SMA 18 days. In any case, I think it very prudent to take some defensive measures, as mentioned yesterday.