The stock market has taken on a much more bullish tone since the late- September lows. We had several buy signals on September 30th, and they were well-timed. The bullish case is still strong, even after $SPX has advanced 150 points this month.
The $SPX chart is bullish. $SPX broke out over 2000 last week, and this week it pulled back to that (general) level before moving to new relative highs once again. Hence the breakout over 2000 was retested, and that retest was successful.
Equity-only put-call ratios remain on buy signals, although there is a slight "wiggle" appearing at the end of their charts.
Market breadth oscillators are strong and back in overbought territory once again, and that should continue to bode well for stocks.
Volatility indices have generally moved lower, and that is bullish. $VIX will remain in a (bullish for stocks) downtrend as long as it continues to close below its 20-day moving average.
In summary, the indicators are all bullish, so we continue to have a bullish intermediate-term outlook.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.