The market continues to march higher, in a slow plodding manner. Most days recently have seen another new rally high for the SPX and most other major indices. This is certainly positive from an intermediate-term viewpoint, as the momentum and trend are bullish.



The equity-only put-call ratios continue to move lower. The They can certainly be considered to be overbought, since they are so low on their charts. But, there are no sell signals in effect.



Market breadth remains quite overbought. However, since it has been in that state for nearly two months, one cannot say that this is an imminent danger.



Volatility indices (VIX and VXO) both continue to decline. The continuing downtrend in these volatility indices is a bullish sign for stocks.



In summary, the upward trend continues without pause. A correction to alleviate some of these overbought conditions would be healthy. If the market goes too long without a correction, it will be much nastier when it finally arrives.

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.