The following Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
The $SPX chart is bullish, as it continues to rise and stay above its 20-day moving average, which is now at about 1160. That is also Tuesday's low, so it represents the first level of support.
The equity-only put-call ratios are weakening. The standard ratio rolled over to a sell signal, prematurely, about three weeks ago. The weighted ratio has not given a sell signal yet, but as you can see from Figure 3, it is beginning to flatten out, and a sell signal would be generated if it turns and begins to rise.
Market breadth is modestly overbought at current levels.
Volatility indices ($VIX and $VXO) have remained in downtrends (generally) and thus continue to paint a bullish picture.
In summary, the intermediate-term indicators are bullish, and until there is some breakdown by $SPX below support levels, we will not take bearish positions.