A week ago, we noted that there were three short-term, oversold buy signals. Now, more buy signals are occurring, and these are of the intermediate-term variety. The last hurdle was cleared today, when the $SPX closed above 2000.

Equity-only put-call ratios remain on buy signals, as they continue to decline from recent highs.

Market breadth has improved greatly during this most recent rally, and has now reached extremely overbought levels. That is not necessarily a bad thing, for we have often stated that we want the breadth oscillators to get strongly overbought during the initial phases of a new leg upwards in the stock market.

Volatility indices have declined as the rally has progressed, and $VIX closed below 19. That is very bullish, in my opinion, and it takes the $VIX chart out of a bearish status and puts it into bullish status. In summary, the buy signals are piling up, and we are intermediate- term 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.