The S&P 500 Index ($SPX) and other major indices are near new post-2008 highs. $SPX has now exceeded the April and November highs, and on a chart basis alone, $SPX has targets in the 1280 to 1300 area.





The only technical indicator that is confirming this movement is volatility. The volatility indices ($VIX and $VXO) have both made new lows all this week.




The equity-only put-call ratio charts are shown in Figures 2 & 3. Both the standard and the weighted ratios have rolled over and begun to rise. Those are sell signals.




Breadth indicators are deteriorating and NYSE breadth has given a sell signal.




In summary, the chart of $SPX is bullish and that is the most important indicator.

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.