$SPX pulled back to its still-rising 20-day moving average, which was at about 2870 and that was been about the extent of the correction. As a result, the chart of $SPX remains bullish, as the Index is still in an upward-sloping channel and no important support levels have been broken.
The put-call ratio charts are rather non-descript at this time, as they are meandering sideways. Technically, the standard ratio is on a buy signal, and the weighted is on a sell signal, but neither has been particularly productive for some time now.
Breadth has improved this week, but both breadth oscillators remain on sell signals. The sell signals from a week or so ago had a minor effect, but have not been able to follow through.
Volatility remains low. $VIX probed up towards 15 a couple of times, but never closed above it, and now it is retreating again. We continue to feel that as long as $VIX continues to close below 15, it is not a problem for the stock market.
In summary, it looks as if once again the bears have lost their chance at creating some downside momentum. At this time, therefore, the picture remains bullish until proven otherwise.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.