The market continues to fluctuate, seemingly with news about Syria. Dovish news is bullish; hawkish news is bearish. However, given the fact that there are intermediate-term sell signals in effect, there is a lot more going on than merely reacting to news about possibly attacking Syria’s chemical weapons delivery systems. $SPX rallied strongly, but failed near 1650.
The stock market has continued lower, after first breaking significant support at 1680 about two weeks ago. With the further breakdown this week, below the next support level at 1640, there is a distinct pattern of lower highs and lower lows. That makes the $SPX chart bearish.
Equity-only put-call ratios are both on sell signals.
The market is using the excuse of potential Syrian bombing to sell off sharply. Yesterday was one of the ugliest days of the year, but still wasn’t all that negative in terms of pushing indicators into oversold territory. $SPX broke down what had been potential support at 1640 (last week’s lows). This now brings support at 1620, and then at 1600 into play.
Nearly all of our indicators turned bearish in the last two weeks. The breakdown of the Standard & Poors 500 Index ($SPX) below support at 1680 was the trigger that turned the $SPX chart negative.
However, market breadth is already oversold, and buy signals are beginning to appear from these indicators.
The Standard & Poors 500 Index ($SPX)) broke down below the important support level of 1670-1680 today and, in doing so, unleashed a torrent of sell signals. The picture has changed to intermediate-term negative.
The equity-only put-call ratios are split. The weighted ratio made new lows recently, trading at its lowest prices in over a year. Then it curled up, in a sell signal. The standard ratio remains on a buy.
The overbought conditions that had existed a couple of weeks ago were largely worked off by a sideways to slightly down stock market, as measured by the Standard & Poors 500 Index ($SPX). It seems that the bears had their chance, but didn't seize it once again. There is strong support in the 1670-1680 area.
Equity-only put-call ratios remain on buy signals. Note the charts if Figures 2 and 3.
Stock market bulls are keeping the upside pressure on, forcing short covering and other unwanted maneuvers from the bears’ point of view.
The stock market has proved to be very resilient once again. Overbought conditions -- which looked formidable a couple of weeks ago -- have mostly abated with only a slight downward (and mostly sideways) move by the Standard & Poors Index ($SPX). Now, new highs have been registered, and the bears can only lament once again that they failed to capitalize.
$SPX has support in the 1670-1675 area, which is the area of daily lows several times in July.
Stocks were volatile Wednesday, after the FOMC announcements. But, in the end, prices ended up about unchanged. Overnight, though, that changed substantially as a strong rally has unfolded, with S&P futures up 14 points on Globex. Not much has changed with respect to the individual indicators. Both equity-only put-call ratios remain on buy signals. $VIX is still below 15, so that is bullish.
