By Lawrence G. McMillan
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.
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