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By Lawrence G. McMillan

The stock market continues to be resilient, if dull.  The bears have not been able to force prices downward, despite what was a very overbought condition a week ago.

Equity-only put-call ratios remain bullish.  Both the standard and weighted ratio have now made new lows for this recent move, and that confirms their buy signals.

Market breadth incicators had reached very overbought levels last Friday, but both oscillators have declined substantially during the mostly sideways action this week.  As a result, both remain on buy signals, and neither is particularly overbought at this point.

Volatility indices ($VIX and $VXO) continue to drift lower.  The fact that they are in downtrends is bullish for stocks.

In summary, we remain bullish, even though we realize that overbought conditions could generate a short-lived decline at any time.

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