The over-riding characteristic of this market since the first of the year is boredom. Daily ranges are tiny, and volatility is practically non-existent. This is ironic, of course, since at the end of last year, so many traders were certain that volatility would increase dramatically once the holidays were over.

The $SPX chart is in an intermediate-term uptrend. The dominant trend line is the rising one that connects the October and November bottoms.

The equity-only put-call ratios are bullish. They have been declining for some time, with a few minor interruptions, and that is bullish for stocks.

Volatility indices ($VIX and $VXO) have continued to fall steadily for some time now. That makes them bullish indicators for stocks, too.

The mild overbought condition could potentially spur a short-term market correction within an overall intermediate-term bullish trend.

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.