The trend of the $SPX chart is clearly bullish: higher highs and higher lows, with all significant moving averages trending upward. There should now be some support near 3150, which was a minor double top prior to the latest move to new highs. Below that, the December lows at 3070 provide stronger support.
Equity-only put-call ratios are arguably our most bearish indicators at the moment. Both are on sell signals now.
Market breadth has improved enough that both breadth oscillators have moved back into modestly overbought territory, thus canceling out recent sell signals and returning them to "buy" status.
Volatility has remained mostly bullish. First, the $VIX "spike peak" buy signal of December 4th is still in effect. Moreover, $VIX remains below 16 on a closing basis, and that is bullish, too.
In summary, the $SPX chart is strongly bullish, and that is the most important indicator. Really, the only sell signals are from put- call ratios and the mBB signal. So stay long and use trailing stops.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.