fbpx Weekly Stock Market Commentary 10/16/15 | Option Strategist

Weekly Stock Market Commentary 10/16/15

By Lawrence G. McMillan

The stock market has taken on a much more bullish tone since the late- September lows.  We had several buy signals on September 30th, and they were well-timed.  The bullish case is still strong, even after $SPX has advanced 150 points this month.

The $SPX chart is bullish.  $SPX broke out over 2000 last week, and this week it pulled back to that (general) level before moving to new relative highs once again.  Hence the breakout over 2000 was retested, and that retest was successful.

Equity-only put-call ratios remain on buy signals, although there is a slight "wiggle" appearing at the end of their charts.

Market breadth oscillators are strong and back in overbought territory once again, and that should continue to bode well for stocks.

Volatility indices have generally moved lower, and that is bullish. $VIX will remain in a (bullish for stocks) downtrend as long as it continues to close below its 20-day moving average.

In summary, the indicators are all bullish, so we continue to have a bullish intermediate-term outlook.

This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.

The Option Strategist Newsletter $29 trial

Share this

Option Strategist
Blog Search

Recent Blog Posts

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.