By Lawrence G. McMillan
$SPX exceeded its early July highs today. That is a new high for this recovery rally that began in early June. As a result, the classic bullish pattern of higher highs and higher lows on $SPX has expanded and been strengthened by adding this new high (see Figure 1).
Equity-only put-call ratios remain strongly on buy signals. They continue to decline, and that is bullish for stocks.
Market breadth has been reasonably strong of late. Breath indicators are on buy signals, and they are modestly overbought.
By Lawrence G. McMillan
The market sold off sharply on Tuesday when Fed Chairman Bernanke spoke, but then staged a strong reversal rally – closing hear the highs of the day. This continues the strong pattern on the $SPX chart, and we expect a successful challenge of the 1375 resistance area shortly.
Equity-only put-call ratios continue to decline, and that is bullish for stocks. They have not declined so far that they would be considered overbought. Therefore, these intermediate-term indicators are pointing strongly higher.
By Lawrence G. McMillan
In late June and early July, $SPX staged a strong upside breakout, taking the average to new relative highs (and most other major averages followed). This created the very bullish pattern of higher highs and higher lows on the $SPX chart, after the bottom in early June. As the market made these new relative highs, it became extremely overbought. $SPX has backed off about 50 points since July 3rd, alleviating that overbought condition.
Equity-only put-call ratios remain on buy signals.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Three week ago, we wrote that strong buy signals were in place . For the most part, those buy signals remain in place today. Therefore we continue to look for higher prices ahead.
By Lawrence G. McMillan
$SPX broke out on June 29th, and has since added togains, exceeding the early June highs. This creates the bullish pattern of higher highs and higher lows on its chart. $SPX could easily challenge resistance at 1390-1400 in the immediate future.
Equity-only put-call ratios remain on buy signals.
Market breadth was very strong again, and now the breadth indicators are on buy signals but are quite overbought.
By Lawrence G. McMillan
In a somewhat classic move, “everyone” was bearish and yet the market broke out to the upside. The most recent upside move kicked off in earnest last Friday, after yet another apparent agreement in Europe.
By Lawrence G. McMillan
$SPX is back down into its previous trading range. The broadest measures of the $SPX trading range now show support at 1270 (the early June lows) and resistance at 1360 (the mid- June highs). There is also support at 1305-1310, where $SPX has registered daily lows several times this month. The 1335-1340 area is now resistance once again.
Equity-only put-call ratios remain on buy signals.
At the current time, breadth indicators are on buy signals as well.
By Lawrence G. McMillan
So for the second time in four days, a severe down day was followed by a tepid rally. This is hardly bullish inspiration. $SPX sits almost exactly in the middle of the month's lows (1270, roughly) and highs (1360). There should also be support in the 1305-1310 area.
By Lawrence G. McMillan
The stock market had just about everything going for it in technical terms this week, but then the fundamentalists delivered a nasty blow today (Thursday, June 21st). Technically $SPX is just below the support level of 1330-1340.
Equity-only put-call ratios remain on buy signals, despite Thursday's large decline.
Market breadth was very poor on Thursday. As a result, both breadth oscillators registered sell signals.
By Lawrence G. McMillan
The stock market finally responded to a broad set of positive technical indicators and has broken out to the upside. The individual pieces began to fall into place last week, with the last piece (VIX closing below 21) occurring this past Monday. This should pave the way for a strong intermediate-term rally.
