Exactly a week ago, on February 9th, $SPX broke out over 2300, establishing new all-time highs, accompanied by almost all of the major averages, including finally the small-cap Russell 2000 ($RUT). The chart of $SPX remains bullish as long as $SPX is above 2300.

Both equity-only put-call ratios have turned sharply lower in the past week, as the upside breakout has been accompanied by heavy call buying. Thus they remain on buy signals.

Overall, breadth has been positive so the breadth oscillators remain on buy signals.

$VIX is overbought, too, in that it is at very low levels. But even so, $VIX remains in a bullish state for stocks as long as it is below 15.

So, the market is overbought. That is not a reason to sell. As long as $SPX remains above supoprt and $VIX remains below resistance, we remain intermediate-term bullish.

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.