The market continues to rise, mostly in a very slow-motion fashion. Meanwhile, overbought conditions are building.

$SPX has bumped up against the 1330 level for three days in six, without being able to break through. I would not expect any correction to violate that bullish trend line, but if it should happen, it would be a major negative factor.

Equity-only put-call ratios remain split. The standard ratio remains on the sell signal that was generated last week. But the weighted ratio remains on a buy signal.

Breadth remains on buy signals and is in overbought territory.

Volatility indices ($VIX and $VXO) have remained bullish for stocks, as they continue to decline.

In general, rallies should be sold until this overbought condition is alleviated.

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.