By Jeff Clark in the April 14th S&A Short Report:

The best-looking trade this week is on the short side.

Stocks have rallied nearly straight up for five weeks. Many of the horrendous losses from earlier this year have been erased. Analysts and investors are now almost universally bullish. Banks are reporting profits instead of losses, and President Obama says the recession is over.

All this means it's officially springtime on Wall Street. The winter storms have blown through. The sun is a little bit brighter and the sky a little bluer.

But don't put the umbrella away just yet. Heavy downpours can interrupt even the most tranquil spring. And by the look of things, many of the newborn bulls are about to get wet.

Stocks are in an intermediate-term uptrend, which will likely last several more weeks. But the market is too overextended to the upside right now and overdue for a short-term pullback. This week, we're trading off the potential for that pullback.

Take a look at this 60-minute chart of the S&P 500...



This chart is an excellent illustration of a bearish rising-wedge pattern with negative divergence on the moving average convergence divergence (MACD) indicator. These patterns almost always break to the downside. If the S&P 500 drops below 848, it will break below its rising uptrend line and likely kick off a decline down to about 775.

Learn how to make thousands of dollars per day with the S&A Short Report.