The stock market continues its slow steady march upward. The $SPX chart is becoming stretched, though, and is somewhat overbought.

The equity-only put-call ratios continue to decline. Thus, they remain on buy signals, but they are not far from reaching the lower regions of their charts, which would make them overbought at least.

Market breadth has been steadily positive, and has reached an overbought state as well -- from which sharp corrections often occur.

Volatility indices ($VIX and $VXO) have continued to drop steadily. The downtrend in $VIX continues to be bullish for stocks.

In summary, the intermediate-term indicators are all bullish. However, the short term has become very overbought and as a result, we expect a near-term pullback before the intermediate-term uptrend resumes again.

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.