Join Larry McMillan as he discusses the current state of the stock market on Monday, August 10th, 2020.
Join Larry McMillan as he discusses the current state of the stock market on Monday, August 3rd, 2020.
Now that the Fed meeting is over, and they didn't raise rates (as we have been predicting), what do we really know? Stocks rallied strongly heading into the announcement, and then there was heavy buying right after the announcement. But the party on Thursday didn't end well, with sell programs emerging that knocked $SPX back down and held $VIX up.
Stocks continue to remain in bearish trends. There have been some sharp rallies, but none of them has even reached the now-swiftly-declining 20-day moving average. There is heavy resistance at 1990, with support at 1900 and 1860. Below that, the next target would be 1820.
Put-call ratios have reached extremely high (oversold) levels. The standard equity-only ratio has given a buy signal (Figure 2) But the weighted ratio has not (Figure 3).
