The overbought conditions that had existed a couple of weeks ago were largely worked off by a sideways to slightly down stock market, as measured by the Standard & Poor’s 500 Index ($SPX). It seems that the bears had their chance, but didn’t seize it once again. There is strong support in the 1670-1680 area.
Equity-only put-call ratios remain on buy signals.
Market breadth has generally been quite weak over the past few
weeks. As a result, the breadth indicators have returned to more
normal levels from their overbought extremes of a month or so ago.
Volatility indices ($VIX and $VXO) have remained relatively
subdued as well. That is bullish for stocks.
In summary, unless there is a breakdown by $SPX and some accompanying sell signals, the market can work higher over the near term.