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By Lawrence G. McMillan

There have only been four down days in January, and as a result the market is very overbought.  The intermediate-term indicators are mostly still positive at this time, although there is one glaring exception -- a new sell signal (just registered today) from the standard equity-only put-call ratio.      

Other intermediate-term indicators remain positive, though.  For example, $SPX is still clearly in an uptrend.  However, if the 1260 level were breached, that would be much more bearish.      

Breadth indicators remain on buy signals. $VIX remains in a steady downtrend, which is also bullish.

In summary, a short-term correction should...