By Lawrence G. McMillan
Stocks appear to be struggling a bit, but there hasn't been a decisive breakdown. The $SPX chart shows some negative trend lines, but the important area is support at 2120. As long as that holds, the bulls will remain in charge.
Equity-only put-call ratios (Figures 2 and 3) have been wavering back and forth -- especially the normally more reliable weighted ratio. The standard ratio has been moving higher for a week or so, and it is on a sell signal. The weighted ratio has essentially been moving sideways. The computer analysis programs rate it as a "buy."
Market breadth has been a bit more decisive. Both of these breadth oscillators are now on buy signals.
The volatility complex has a bullish status. First and foremost, $VIX generated a spike peak buy signal as of Wednesday's close.
In summary, the indicators remain mixed. The fact that there is a $VIX "spike peak" buy signal is interesting, but not conclusive. If $SPX breaks support at 2120, that will be a decisive and potentially conclusive move.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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