Technical indicators have turned more bullish in the past week, so the
current rally probably has more room to run.
The chart of SPX has taken on a slightly more bullish tone.
This week SPX overcame resistance at 1200-1210, although it has
now fallen back below that level. There is also resistance at 1230 — the
intraday high of both the last two trading days.
Equity-only put-call ratios have rolled over to buy signals this
week. The put-call ratios are by far the most bullish indicators
at the current time.
Breadth indicators are mixed and are in a neutral state.
Volatility indices (VIX and VXO) have given several spike
peak buy signals, but those are rather short-term in nature.
In summary, only the put-call ratios are actually on buy signals
at this time. An improvement in breadth, coupled with a decline in
$VIX so that it closes below the 30-31 area would be further bullish