The stock market, as measured by the Standard & Poors 500 Index ($SPX) continues to march upward at a dizzying pace. The market is overbought, and if $SPX violates support at 2060, we could finally see a correction.

Equity-only put-call ratios remain on buy signals. You can see from Figures 2 and 3 that the ratios are still trending downward. That is bullish.

Both of the breadth indicators remain on buy signals, and they are modestly in overbought territory.

Volatility indices have generally been declining, and -- while VIX can certainly be considered overbought as it hovers near 12 -- stocks can continue to advance while these volatility measures meander at low levels.

In summary, the intermediate trend is bullish, but the overbought condition is getting to be problematic.

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.