Stocks backed off today, but the bull market is still intact so far. There is support on the $SPX chart at the various horizontal red lines in Figure 1. There isn't MAJOR support, though, until you get down to 3070.
Equity-only put-call ratios are at extremely low levels, due to heavy call buying during most of the recent three-month stock market rally. But they are not on confirmed sell signals yet.
Market breadth has been modestly strong -- enough to keep the breadth oscillators on buy signals. One would have thought that today's decline might change that, but advances nearly caught up to declines, so the buy signals are still intact.
Volatility has remained in the bullish camp as well. On a longer-term basis, $VIX need to close above 16 in order to change the $VIX chart to a bearish one, as far as stocks are concerned.
In summary, the technical indicators remain bullish. We will act on sell signals if they are confirmed, which so far they haven't been. Meanwhile, continue to roll long call strikes higher and to tighten trailing stops.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.