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Market Commentary

By Lawrence G. McMillan

Various indicators have been turning bearish since mid- November. But until this week, $SPX itself had not broken down, and since price is "king," that was quite important. However, now $SPX has broken down, as it has fallen below support at 2050. This completes a bearish pattern, and a full-fledged correction is underway. This could be sharp and short-lived, and since it is taking place late in the calendar year (when seasonal bullishness occurs), that is probably the case. However, it should be respected until buy signals actually occur.

Equity-only put-call ratios rolled over to sell signals about 10 days ago, and those signals remain strongly...

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