September continues to be very bullish, so far. Every day but one has been up. However, $SPX is now approaching the top of its trading range (1130).





Equity-only put-call ratios are still on sell signals.




Market breadth, on the other hand, has been very strong and breadth indicators are on buy signals.




Volatility indices ($VIX and $VXO) probed sharply lower last week, but quickly retreated to the confines of their own trading ranges.




In summary, as $SPX nears the upper end of its trading range, it doesn't have much support from the other technical indicators. It's possible that $SPX could break out over 1130, but it just doesn't seem that it has the technical backing to do so, unless the put-call ratios turn to buy signals and $VIX breaks down clearly below 22.

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.