As $SPX has approached the all-time highs, some selling has appeared. This is understandable, as many traders probably figure they are grateful to have gotten "even" and are looking to reduce exposure, considering that the future could be volatile and uncertain. However, our indicators remain bullish, and we expect further upside progress.
The equity-only put-call ratios remain at extremely low levels, meaning they are overbought, but they are still on buy signals. Sell signals will be confirmed when these ratios begin to visibly rise and trend higher.
Market breadth has been relatively constructive recently, and both breadth oscillators remain on buy signals. Cumulative breadth statistics are even more positive. The "stocks only" cumulative advance-decline line has made a new all-time high on four of the last six trading days.
The intermediate-term interpretation of the $VIX chart is bullish for stocks. That will remain the case as long as both $VIX and its 20-day moving average are below the 200-day moving average of $VIX.
Overall, we have no sell signals in place and $SPX remains above support on its chart. Hence, we remain bullish.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.