The market has been on a rather wild ride for over a month now. With the action of the last two days, our indicators have swung back to a bullish status, for the most part.

The fact that $SPX has now risen back above its 20-day moving average and has closed above 2060 is positive. A second day's close above 2060 would be confirmation of the recovery in the $SPX chart.

Equity-only put-call have rolled over to buy signals.

Market breadth was not very supportive of the December rally, and the breadth oscillators quickly moved to sell signals in late December. However, things have now improved, and both breadth oscillators are back on buy signals.

Volatility indices rose sharply when the market fell at the beginning of the year, but the rally has now produced a $VIX spike peak buy signal. Also, with $VIX closing below 18, that is another short- term bullish sign.

In summary, all of the indicators have moved to a positive state ($SPX a little bit less so than the others), plus there are system buy signals from $VIX "spike peak" and from "oscillator differential."

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.