The stock market has proved to be very resilient once again. Overbought conditions -- which looked formidable a couple of weeks ago -- have mostly abated with only a slight downward (and mostly sideways) move by the Standard & Poors Index ($SPX). Now, new highs have been registered, and the bears can only lament once again that they failed to capitalize.

$SPX has support in the 1670-1675 area, which is the area of daily lows several times in July. Equity-only put-call ratios remain on buy signals.

Market breadth (advances minus declines) was very overbought just two weeks ago. Now breadth indicators are mixed, with one on a buy and the other on a sell. Volatility indices ($VIX and $VXO) have spent most of the last two weeks going sideways.

As long as $VIX continues to close below 15, stocks should be able to rally. In summary, despite what had appeared to be an overbought market, only one minor sell signal developed from our indicators, and now $SPX is making new all-time highs once again. So, until there is some visible break in the uptrend, we 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.