$SPX continues to trend higher in a steady fashion, with a rising 20-day moving average following along behind. That much is pleasantly bullish, but there are some overbought conditions.





The equity-only put-call ratios are positive, as they continue to decline. The trend is down and that's bullish for stocks.




Market breadth has generally been positive, but not overly so. As a result the breadth indicators are on buy signals, and are only modestly overbought.




Volatility indices ($VIX and $VXO) are both in downtrends, and that, too, is bullish for stocks.




In summary, the indicators are all bullish, so I would not recommend going short into the face of that. However, we also understand that volatility is "too low," and there are several overbought conditions in place. As such, a sharp, but perhaps short-lived correction is certainly possible in the near term.

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.