This week’s action makes the $SPX chart bullish (how could it be anything else when trading at new all-time highs?).
There is no technical resistance for a chart at new all-time highs.
There is support at 1850 (which had been resistance), then at 1825-
1835 below that. It is our opinion that a close below 1825 would be
Equity-only put-call charts continue to be bullish.
Market breadth has been exceedingly strong throughout the
recent month-long rally. That is strong confirmation of the new highs in $SPX.
Volatility indices ($VIX, $VXO, and $VXST) spiked modestly
higher during last Monday’s decline, but the spiked right back down
again. As long as these indices remain at relatively low levels, the
stock market can continue to advance.
In summary, the indicators are all bullish at the current time.
Thus, the intermediate-term picture remains bullish. However, the
overbought conditions are building and a sharp, but short-lived
correction can be expected at any time.