Not much has changed in weeks, it seems, as the market continues to plow ahead steadily and slowly on almost every day. The rise has produced an overbought condition in that $SPX has risen above its 20- day moving average by a large amount. But the intermediate-term trend is still bullish, and there is support near the latest breakout level, at 1150.





The equity-only put-call ratios remain on buy signals. They are the only one of our indicators that is not overbought.




Market breadth, on the other hand, is very overbought.




Volatility indices ($VIX and $VXO) have made new lows again this week. Thus, their downtrends remain intact, and that is bullish for stocks.




In summary, there are no intermediate-term sell signals from our indicators. However, with the market being so overbought, we do not feel comfortable taking unhedged long positions.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, recognized as essential resources for any serious option trader's library.