The stock market has been in a dull, drifting mode all week. It is still easily within the bullish trend channel that began last August, and as long as that statement continues to be true, the bulls have the upper hand.

Equity-only put-call ratios are beginning to waver, but for the time being they remain on buy signals.

Market breadth oscillators turned bearish a week ago. They have remained on sell signals ever since.

Volatility indices ($VIX and $VXO) have moved higher over the past two weeks, but still remain relatively low, and that is conducive to higher stock prices.

In summary, there are some cautionary signs appearing: the breadth oscillator sell signals, the potential sell signals in the equity-only put-call ratios, and the rising $VIX. We will monitor these potential bearish problems closely, but the bottom line is this: as long as $SPX remains above 1370, it is still within the bullish channel, and we will remain 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.