The S&P 500 Index ($SPX) pulled back only a little, but that was enough to alleviate some of the overbought conditions and to establish support at 1340.

Equity-only put-call ratios have begun to move sideways recently, but they remain on buy signals.

Market breadth was fairly negative from February 10th through February 15th. That was enough to alleviate the serious overbought condition that had existed in the breadth oscillators. Since then, breadth has improved again, and at this time, breadth is on a buy sign al.

Volatility indices ($VIX and $VXO) have been quite interesting. $VIX may no longer be in a confirmed downtrend. But the stock market can continue to advance while $VIX moves sideway.

In summary, the low-volatility conditions are building. This isn't necessarily the harbinger of a sell signal, but it is a sign that volatility will increase. As long as $SPX holds above 1340, the technical picture is bullish.

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.