The stock market continues to rise, albeit slowly. There are some severe overbought conditions that need to be worked off, but the overall picture painted by the technical indicators is bullish.




The equity-only put-call ratios are bullish, as they continue to fall. As long as their trend is down, that is positive for stocks. The market breadth indicators are bullish, but are extremely overbought.






Volatility indices ($VIX and $VXO) continue to decline, although they seem to have stabilized at current low levels. The general trend of these indices is down, and that is bullish for stocks.




In summary, there are no sell signals from the technical indicators, but there are some rather severe overbought conditions. Considering that $SPX is approaching resistance (beginning at 1130), this is likely a short-term bearish environment.

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.