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My indicators are showing neutral readings this week, a downgrade from last week’s solid bullish readings. While it seems that the bulls are still in control at this point, there is a lot of euphoria in the market right now, and perhaps too much.

From a technical perspective, the market looks like it is getting slightly overextended right now after a strong bullish run, so I would expect to see some mild corrective action in the near term. There are a lot more bulls than bears out there at this point, and that typically means that a pullback is coming.

On the positive side, the S&P 500 Volatility Index (INDEXCBOE:VIX) is still low, around 12. Until I see the VIX head higher and close in the 15-17 area, I think our best move is to continue to lean toward the bullish camp. However, if and when we see a spike in the VIX, I will take precautions and make sure to have protection on the downside.

The Nasdaq and the Russell 2000 small-caps have made dramatic moves to the upside over the past few weeks and have set new all-time highs. I don’t like to see the crowd all on one side of a trade — but I do think it’s a good time for some calls on one of the trading exchanges themselves:

Buy to open the CME Group Inc (NASDAQ:CME) Sep 185 Calls (CME180921C00185000) at $1.50 or lower.

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InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.