A week ago, stocks were on their heels after one of the worst down days on record on June 11th. Prices rallied within a couple of days, but the negativity of that day still hangs over this market. If $SPX were to fall below 2920, that would be bearish. But as it stands, the $SPX chart remains bullish as long as the Index holds above 2920.
Equity-only put-call ratios continue to fall, thus remaining on buy signals. That will continue to be the case until they visibly roll over and begin to rise.
Join option strategist Larry McMillan as he discusses the current state of the stock market and what our option-oriented indicators are saying.
Stocks continue their wild ride. Yesterday, $SPX gapped open strongly higher, then gave back all the gains in a very short period of time when Fed Chairman Powell said that the Fed might not be buying everything, forever. But that selloff was quickly reversed in a matter of minutes. In the end, $SPX closed nearly 60 points higher, It closed right at the lower edge of the gap from last Thursday. If that gap is filled (at 3182), it would be another bullish sign. Short-term support exists at 2965 (Monday’s low, which was left in the dust by the 188-point rally that followed in about 1 trading day, as Monday’s lows were made in the morning and Tuesday’s highs were also registered in the morning; the move in futures was even larger). Below that, support in the 2920-2940 range is important. It is the top of the trading range from April-May; if $SPX were to fall back into that trading range, it would negate a lot of work that’s been done since then.
The overbought conditions intensified this past week with a couple of huge up days on June 5th and 8th, but then exploded into one of the worst down days in history on June 11th. The wild ride seems destined to continue.
Join option strategist Larry McMillan as he discusses the current state of the stock market and what our option-oriented indicators are saying.
In the November 1929 - April 1930 rally, stocks rose 48% and volatility (all that we have to go on from that time period, of course, is realized/historic volatility) dropped from 112% to 8%!! Then we all know what happened after that: the wheels came off, and the market made new lows by October 1930, and the rout was on.
Join Larry McMillan as he discusses the current state of his option-oriented stock market indicators.
Stocks broke upward out of the trading range this week, and have made new intraday highs for this rally each day since. Thus, the rally that began from the extreme oversold conditions on March 20th remains intact. There should be support in the 2940-2950 area, which was the top of the recent trading range. As for overhead resistance, the 200-day moving average was supposed to offer resistance, but so far it hasn't.
The action over the past few days has been just above those old relative highs at 2955, but has certainly not been a true breakout from the previous trading range. The high this week was 2980.
