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The following Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.

The market, as measured by $SPX, broke out to upside on October 5th, and has continually added to its gains since then. That breakout turned the intermediate-term indicators bullish, and they mostly remain in that state.

The equity-only put-call ratios were the first indicators to turn bullish -- a little over a month ago. Now, the standard ratio is the first one to turn bearish, although the weighted ratio remains solidly on a buy signal.

Market breadth indicators are extremely overbought now, after the strong move since the upside breakout over $SPX 1150 occurred.

Finally, last week $VIX did collapse below 21, and traded down to just below 18 this week. This decline in $VIX confirms the intermediate-term bullishness of the $VIX chart.

In summary, the intermediate-term indicators remain bullish. However, resistance at 1180-1220 coupled with an overbought condition will probably cause some short-term pullbacks.