Very little changes from day to day, or even from week to week, when describing this market. It continues in a bullish, steady advance, with very mild corrections, and little change in the status of most indicators.

$SPX is climbing while staying well above its 20-day moving average. That makes it short-term overbought. However, the trend of $SPX and the fact that it -- and many other major averages -- have recently made new highs together are intermediate-term bullish indicators.





The equity-only put-call ratios (shown in Figures 2 and 3) have continued to decline, and that is bullish.




Market breadth remains very strong. Obviously, the market can advance while breadth is overbought.




Volatility indices (VIX and VXO) have continued to decline. There had been a potential uptrend developing in $VIX last week, but that is no longer the case. The fact that these volatility indices remain in downtrends is another intermediate-term bullish indicator.




So, summing it up, the market is strong and bullish from an intermediate-term viewpoint, but it is flashing overbought conditions in a number of areas.

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.