The broad stock market, as measured by the Standard and Poors 500 Index ($SPX) continues to make new highs almost every day. $SPX finally moved above its 2007 intraday highs, and so it (and the Dow $DJX) are trading at prices never seen before.

$SPX clearly established 1540 as a major support level, as it has rallied strongly and sharply off that level twice in the last month.

Equity-only put-call ratios continue to be heavily distorted by protective put buying.

Breadth has been positive enough in the last few days (since the major $SPX upward reversal last Friday morning, after the Unemployment Report), to return the breadth indicators to buy signals.

Volatility indices ($VIX and $VXO) have painted a bullish picture as well. $VIX once again has remained bullish by constantly closing below 14.

For now, we remain bullish as long as the chart of $SPX is bullish. At a minimum, it would have to close below 1560 to create some doubt on its chart.

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.