The broad stock market -- as defined by $SPX -- had a major failure today in that it could not break through the upside resistance at 1265 (the approximate location of the 200-day moving average).

Equity-only put-call ratios are now struggling to remain on buy signals.

Market breadth has continued to be a fairly accurate short-term indicator, and the breadth indicators are technically on buy signals even after very negative breadth today.

$VIX has become rather docile, and seems to be calling for more of a trading range environment.

Of course, all of this action is taking place in the context of the European financial meetings this week.

The surest strategy seems to be planning to fade overbought and oversold conditions, as that has been fairly successful -- and likely will continue to be.

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