The stock market continues to climb, without much resistance in its way. $SPX continues to be the best indicator (i.e., price). The major trend line connecting the August and November lows is currently just below 1300 -- about 40 $SPX points below today's closing price. There is also support at several stages in between.
The equity-only put-call ratios are reluctantly on buy signals.
The breadth oscillators are bullish and overbought.
Volatility indices ($VIX and $VXO) have stopped going down, which is a bit of a nagging non-confirmation of the higher stock prices, but they are still in a bullish mode for stocks.
In summary, a sharp but short-lived correction of 40 $SPX or so is possible due to the extended nature of many of the indicators. But the intermediate-term trend is still upward as long as the major trendlines in $SPX and $VIX are intact.
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.
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