Time for a break?

markets have been steadily grinding up.  So far no panic buying suggestive of a capitulation top.  However some markets look over extended for now.

FTSE daily, 4 hr and 2 hr

Looking at various time frames they all seem to be overbought.  Ideally a retrace would be good for refreshing the trend up.  However it may be the FTSE trades flat rather than trading down significantly.  

3 main options

1. a correction within the up channel, first target the mid line of the up channel (dashed line)

2. trade sideways until overbought conditions are relieved.

3. market continues up and more extended, but would lead to a more dramatic correction, espcially of the rally is sharp and in "blow off" style.