The stock market, as measured by the S&P 500 Index ($SPX), did a complete about-face this week, despite the terrorist atrocities after the market closed last Friday.

The rally has carried back to just above the 20-day moving average. Ultimately, there is resistance from 2115 to 2135, the series of market tops that have been made in the last year.

The standard equity-only put-call ratio has done nothing but fall, and so it remains strongly on a buy signal. And the weighted ratio has returned to a bullish state as well.

Breadth was strongly positive this week. Both breadth oscillators remain on buy signals.

Volatility indices dropped sharply this week. As a result, $VIX is in a bullish state at this time.

In summary, this week's strong rally has put the onus on the bears to produce something immediately if they are going to do so at all. Otherwise, the bulls may find clear sailing all the way to the end of the year.

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.