While there have been some indications that this bull run is "tired," there are few if any technical sell signals to indicate that a change of direction might take place. $SPX and $DJX (the Dow) made new highs today (6- year highs for the former, and all-time highs for the latter), although $RUT, $SML, $VLE, and $NDX did not.  The main index chart that we follow -- $SPX -- thus remains very bullish, as the index continues to climb within its ascending channel.  The bottom of the channel is at about 1400 right now, so any violation of that area on the downside would be cause for concern.  Lacking that, the intermediate-term bullish trend remains in place.

The equity-only put-call ratios continue to confirm that intermediate term bullish outlook, too.  As long as they are declining, they are on buy signals (which originated months ago).  They are beginning to decline into rather low areas of their charts -- especially the weighted ratio.  As such, our computer projections are warning of a possible sell signal on the weighted chart.  However, we would not jump the gun; wait for confirmed, visual sell signals before acting bearishly.

Market breadth faltered a little over the past week or so, and the "stocks only" breadth oscillator gave a sell  signal, but that was not confirmed by the NYSE-based oscillator.  As we've stated before, these are confirming indicators, not leading ones, so we'd wait for at least one other indicator to turn bearish before acting on any breadth sell signals.

Volatility indices ($VIX and $VXO) have declined to historic lows, as both fell below 10 this morning.  They are thus extremely overbought, but the market can continue to advance as long as these volatility measures remain depressed.  Only if $VIX closed above 12.70 would we consider it to have turned bearish.

In summary, things remain much the same as they have for a long time now: intermediate-term bullish, with the possibility of a sharp, but short-lived correction (because of the overbought conditions).  This view is supported by the fact that expiration has a bullish bias to it (see below) and the end of the year is traditionally a bullish, low-volatility period. That doesn't give the bears much time to operate, even if they wanted to (next week, perhaps), so even if sell signals arise, they probably wouldn't be able to generate substantially lower prices until next year.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, recognized as essential resources for any serious option trader's library.