Watch McMillan Analysis Corporation president, Lawrence G. McMillan, discuss the current state of the stock market.
The S&P 500 Index ($SPX) broke out to new all-time highs again this past week, and now has closed at a new all-time high or traded at a new intraday all-time high on six of the last seven trading days. That keeps the $SPX chart bullish. There should be some support near the 3340 area, which was the old highs that were exceeded this week.
Watch Lawrence G. McMillan's discuss the current state of the stock market.
The swift rally that took place over the last week has left the indicators in a mixed state, with some of the longer-term indicators still in a bearish mode after the major overbought conditions that existed in late January. On the other hand, short-term indicators gave some oversold buy signals, and those have certainly carried the day this week.
Watch the recording of Lawrence G. McMillan's "The Current State of The Market-Predicting Option Indicators" Festival of Traders webinar from yesterday below.
Watch option strategist, Lawrence G. McMillan, discuss the current state of the stock market.
The huge rally in stocks that began on October 4th, 2019, is in jeopardy. A couple of large down days have broken the steepness of the uptrend, but not the uptrend itself.
So, the $SPX chart is weakening, but hasn't completely capitulated to the bearish case yet. There is resistance at 3340 (the all-time highs) and there is support, as noted, at 3210. So if it continues to bounce around in that range, it would just be "re-generating," but a breakout in either direction should be significant.
$SPX has finally broken down somewhat and sell signals have arisen in many areas. This has been enough for us to declare our “core” position as bearish, but the bulls still have a chance to rescue things. To the media, the reason for the selling is mainly the coronavirus, or perhaps earnings, or maybe Boeing, but in reality the market was so overbought that any reason for selling was going to cause some decline.
We first wrote about this indicator in the August 10, 2012, issue (tos2115.pdf, if you’re looking for the file name in the back issues). Excerpting from that article:
President of McMillan Analysis Corp., Lawrence G. McMillan, discusses the current state of the stock market and his option-oriented indicators. Watch below:
