Technical indicators have turned more bullish in the past week, so the current rally probably has more room to run.

The chart of $SPX has taken on a slightly more bullish tone. This week $SPX overcame resistance at 1200-1210, although it has now fallen back below that level. There is also resistance at 1230 -- the intraday high of both the last two trading days.

Equity-only put-call ratios have rolled over to buy signals this week. The put-call ratios are by far the most bullish indicators at the current time.

Breadth indicators are mixed and are in a neutral state.

Volatility indices ($VIX and $VXO) have given several spike peak buy signals, but those are rather short-term in nature.

In summary, only the put-call ratios are actually on buy signals at this time. An improvement in breadth, coupled with a decline in $VIX so that it closes below the 30-31 area would be further bullish signs.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, and also publishes several option trading newsletters.