$SPX is back down into its previous trading range. The broadest measures of the $SPX trading range now show support at 1270 (the early June lows) and resistance at 1360 (the mid-June highs). There is also support at 1305-1310, where $SPX has registered daily lows several times this month. The 1335-1340 area is now resistance once again.

Equity-only put-call ratios remain on buy signals. At the current time, breadth indicators are on buy signals as well.

Volatility indices ($VIX and $VXO) have remained somewhat subdued, even though $SPX has fallen back from its highs. $VIX has not closed above 21 -- the demarcation line (in our opinion) between bearish and neutral/bullish. Below 21 is bullish.

In summary, the technical indicators are bullish, but price action of the $SPX index leaves something to be desired. But if SPX can close above 1340, the bulls will get another shot a creating a lasting rally.

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.