This has been a very strong week for the stock market. New highs have been registered by all the major indices. Not only have all of these major averages traded at new all-time highs, but these moves have been accompanied by strength from the technical indicators. The only problems that are cropping up are those from an overbought market, but as readers know "overbought does not mean sell."

There is support all through the 2170 to 2190 area. As one might expect, call buying has been heavy this week, dominating put volume. Hence the put-call ratios are dropping rapidly. That means that both of the equity-only put-call ratios are on buy signals.

Both breadth oscillators remain on buy signals, and they are getting overbought.

Volatility has been remaining at low levels. $VIX traded below 12 this week, but as long as it is meandering around at these low levels, stocks can continue to rise.

In summary, the indicators are bullish and the market is getting overbought. Remember that overbought markets can continue to rise (even swiftly) for a long period of time, while the overbought condition persists. Furthermore, this is still a positive seasonal period through the end of the year. Hence, we remain intermediate-term positive until confirmed sell signals appear.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, and publishes several option trading newsletters.