By Lawrence G. McMillan
The stock market, as measured by the Standard and Poors 500 Index ($SPX) continues to break down through important support levels. It is the close below 1395 that matters. This should activate targets as low as 1330, although it probably won't be in a straight line, for $SPX worked back and forth between 1330 and 1370 in July, and that range should provide some support.
By Lawrence G. McMillan
Stocks are trying to make sense of the election results, the newly bad news out of Europe, and the potentially foreboding “fiscal cliff.” This resulted in some very volatile action in the market Wednesday — especially if one also includes the overnight session in the S&P futures last night.
By Lawrence G. McMillan
We occasionally publish charts showing the seasonal pattern of $VIX. Figure 2 below shows the composite price of $VIX for a 23-year history (1989 through 2011). This chart is constructed simply by following this method: gather the 23 $VIX prices for the first trading day of the year, sum them, divide by 23, and that is the first point to plot on the left of the graph. Continue that way throughout the year.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Ever since the stock market, as measured by the Standard & Poor’s 500 Index SPX broke down through support late last month (on Oct. 23), the bulls have been struggling to regain control.
By Lawrence G. McMillan
Ever since the stock market, as measured by the Standard & Poors 500 Index ($SPX) broke down through support late last month (on October 23rd), the bulls have been struggling to regain control. They have not done so -- yet. However, yesterday's rally has brought $SPX right back up to the 1430 level, and we are still in the October bullish seasonal period for one more day.
By Lawrence G. McMillan
The stock market — as measured by the Standard & Poors 500 Index SPX +1.04% — is struggling to stabilize after last week’s breakdown below support. The onset of the massive storm Sandy on the east coast of the U.S. has not helped matters.
While the end of the month of October is usually a bullish seasonal period, trading on two of those three days was lost to the storm. Moreover, the third day — today — saw subdued activity as not all market participants were able to, or even wanted to, get to work.
By Lawrence G. McMillan
The fall of the year is a time when we trade two of our better seasonal patterns – The (month-end) October Seasonal buy and the Heating Oil Gasoline spread. In fact, it is nearly time to implement a strategy for the October Seasonal Buy – if we are going to (last year, we passed on taking a position, and that was the correct call; will this year be different?). In this article, we’ll take a more in-depth look at both of these.
By Lawrence G. McMillan
For a considerable period of time, $SPX refused to break down. From the June lows to the October highs, the trend was steadily upward as $SPX traded in a bullish channel. However, that channel was broken on Tuesday of this week, when $SPX broke through it and also broke through support at 1425-1430. This has changed the $SPX chart from bullish to, at best, neutral. Those who want final confirmation would also require a breakdown below the August lows at 1395. That would confirm an intermediate-term bearish outlook for stocks.
By Lawrence G. McMillan
Since early June, the stock market — as measured by the Standard & Poors 500 Index SPX had remained in a steady uptrend channel. On Tuesday, however, SPX not only broke down below the lower band of that bullish channel, but also violated previously strong support at 1,425-1,430. That was a bearish action, and it is also accompanied by sell signals from many other technical indicators.
By Lawrence G. McMillan
A major support level has finally given way. With $SPX falling below 1430, a lot of selling was unleashed into the market. Rally attempts were made, but without much success. As a result, the technical picture has changed, although it could still be considered neutral rather than bearish, at least to some impartial observers. However, with the penetration of the 1430 level, not only was support broken, but so was the bullish trend line that extended back to the June lows.
