The market can get a little more overbought if it has an up day today. However, after that it would be maximum overbought with 9 of the past 10 days being up. Even during the historic rally off of the March 2009 lows when the market became maximum overbought it paused for a few days at minimum before resuming its run.
The market has gone up enough to start causing some serious performance anxiety for hedge funds, which have largely de-risked and are likely underperforming. But even if the market is headed higher there will likely be a better entry point once we work off this overbought reading. The upside should be limited for the next week or so.