Weekly Stock Market Commentary 2/8/13

By Lawrence G. McMillan

$SPX has bounced back and forth in the 1495 to 1515 range for nearly two weeks. A breakout in either direction would likely be enough to spur further momentum in the direction of the breakout.

Equity-only put-call ratios continue to meander sideways.  As such, they are not particularly useful indicators right now.

Market breadth has been positive enough to keep the breadth oscillators on buy signals.  They are also slightly overbought.

Volatility indices ($VIX and $VXO) have also been bouncing back and forth, along with $SPX. $VIX has roughly traded between 13 and 15.  A close above 15 would be bearish for stocks.

In summary, the bears have had plenty of chances to knock this market down, but so far have failed to do so.  The fact that none of the indicators has rolled over to sell signals shows that the bulls remain in charge.

Sign up for The Option Strategist Weekly Updater to receive this market commentary delivered to your inbox each Friday for free.

The Option Strategist $29 Trial

Share this

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.