By Lawrence G. McMillan

The stock market has finally succumbed to months of negative internals, and now the large-cap indices are following the "troops" lower. $SPX has broken down below the bottom of the trading range, violating support at 4500. Not only that, but it has closed below the December lows, which is another longer-term negative for the market.

This decline has exacerbated oversold conditions in many areas, though, so expect violent oversold rallies within what is now a bearish downtrend.

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, January 17, 2022.

By Lawrence G. McMillan

The $SPX Index fell back below 4700 and has been struggling ever since. It has returned to its former trading range (4500 - 4700). A close below 4500 would also be a close below December's lows - often the hallmark of the beginning of a bear market. Meanwhile, a move above 4800 would return everything to a "bullish" status.

Equity-only put-call ratios are not on the same page surprisingly. The weighted ratio is rising, and so it is on a sell signal. The standard ratio is on a buy signal.

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, January 10, 2022.

By Lawrence G. McMillan

The fact that $SPX and the Dow ($DJX) are out-performing just about everything in the universe is well-known, but there doesn't seem to be any letup in the wide divergence between market internals and $SPX. If $SPX falls back below support and closes below 4690, that will remove the "bullish" status from the $SPX chart. There would still be support at 4500, which is the lower end of that trading range.

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, January 3, 2022.

By Lawrence G. McMillan

The fact that $SPX has made new closing and intraday highs is bullish. As for the $SPX chart, there should be support at the old breakout level near 4700, although that has not been tested yet. If $SPX should fall back below there, it would be back in its old trading range, with support at 4500. However, a pullback of that magnitude while not necessarily setting off bear market alarms would remove the current "bullish" status from the $SPX chart.

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, December 27, 2021.

By Lawrence G. McMillan

Stocks plunged over 90 points at one time on Monday, December 20th. However, that produced enough of an oversold condition once again, that buyers stepped in and have taken $SPX all the way back to the top of its trading range, at 4700. The lower end of the trading range is 4500 (see Figure 1), although there is also support at this week's lows, 4530. $SPX has tried numerous times to break out over 4705 and hold those gains but has been unable to do so. But market internals have improved somewhat, so maybe this time it will happen.

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on Monday, December 20, 2021.