Very little has changed over the last week: the bullish procession of stocks continues, accompanied by a severe overbought condition and some negative divergences. The negative factors seem to have little effect, though.

$SPX made new highs again Thursday, overcoming resistance near 1170. The new highs and rising moving averages are intermediate-term positives for the $SPX chart. However, even it is overbought, in that it hasn't even touched its 20-day moving average since late February.



The equity-only put-call ratios are mixed at this time. The standard ratio is still declining, thus remaining on a buy signal. The weighted ratio, however, is on a sell signal at this time.



Market breadth indicators remain in overbought territory.



Volatility indices ($VIX and $VXO) haven't rallied much, so their basic charts are still in downtrends, and that is bullish for stocks.



So, the intermediate-term indicators are bullish (except for weighted put-call ratios), but a sharp, but short-lived correction is due at any time. In fairness, it should be pointed out that similar "correction" conditions have existed for weeks, and the market just plows on ahead anyway.

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.