After a strong upside breakout last week from the triangle formation, the market has spent this week in a tight range. There has been an improvement in the indicators in general, but the most important indicator -- the price chart of $SPX -- has not really responded.

A clear breakdown and close below 2090 would be a short-term negative, likely calling for a retest of support at 2060. A breakout over 2115 and then 2135 would be very bullish.

Equity-only put-call ratios are now both solidly on buy signals, as the weighted ratio rolled over this week, joining the standard ratio, which had already been on a buy signal.

Market breadth has been strong this week. As a result, both breadth oscillators are on buy signals, and both are in overbought territory. This is a "good" overbought, as it is positive that breadth expands when $SPX breaks out to the upside.

Volatility indicators continue to be bullish for stocks. This sector has remained steadfastly bullish since the mid-February lows, even though other indicators have generated sell signals at times. The only worry would be if $VIX were to develop an uptrend. It would have to close above 17 in order to do so.

In summary, the indicators are in place for a rally that would take out the all-time highs. All that is lacking is confirmation from price action in $SPX itself. That could be a big challenge. But since so many appear to be short, it appears that a challenge of those all-time highs is eventually going to take place.

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.