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Market Commentary

By Lawrence G. McMillan

The market's momentum is slowing, but it hasn't necessarily reversed yet. The number of negative breadth days, and their intensity is increasing. The $SPX chart (Figure 1) also shows a waning of momentum, but even the first support level at 2070 has not been broken.

Equity-only put-call ratios continue to remain on buy signals at this time. You can see, from both Figures 2 and 3, that there is an upward "curl" on the extreme right side of both charts. So far, the computer programs that we use to analyze these charts are saying that the "curl" is not yet a sell signal. But it might not take much in the way of accelerated put buying to reverse these...

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