By Lawrence G. McMillan
The long-awaited correction appears to have begun. So far, the damage is minimal and is completely within the realm of an overbought correction. However, all declines start out looking “normal,” so we must be alert as to the possibility of a more serious technical breakdown.
By Lawrence G. McMillan
The stock market loves the fact that the Fed announced an other round of easing (QE III) but also hinted that such operations would continue into the foreseeable future (QE forever).
By Lawrence G. McMillan
The market continues to move higher, albeit at a very slow pace. The bears have been frustrated at mostly every turn, as one negative news item after another has been tossed aside in favor of the “risk-on” strategies dictated by the expected monetary easings from both Europe and the U.S.
By Lawrence G. McMillan
The volatility of the stock market has dwindled to extremely low levels. The 20-day historical volatility of the Standard & Poor’s 500 Index is now 6% — the lowest levels since just after Christmas last year.
By Lawrence G. McMillan
The stock market, as measured by the Standard & Poor’s 500 Index wound down into an extremely tight range this week.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Despite the fact that the news media and fundamentalists can’t seem to find any reason to like this market, it refuses to sell off. In fact, as we head into the last holiday of summer, the market is poised near four-year highs.
By Lawrence G. McMillan
This market is becoming the ultimate in defying bearish opinion. Since June 1st, $SPX has advanced almost exactly 150 points and is nearly back to the yearly highs -- and therefore at a post-2008 high. Yet, bearish opinion is still rather rampant.
$SPX remains within the rising trading channel that extends back to early June (see Figure 1). It is near the top of the channel, so in that sense, it is "overbought."
Equity-only put-call ratios continue to remain on buy signals.
By Lawrence G. McMillan
The stock market, as measured by the Standard and Poor’s 500 Index continues to rise (albeit very slowly of late). Even though the rise is slow, the fact that there has not been a correction in some time has led to some overbought conditions. SPX has not had a significant down day since Aug. 2. Thus, the odds of an overbought-induced short-term correction have increased.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Since the broad stock market, as measured by the Standard & Poor’s 500 Index, bottomed in early June, the ensuing rise has been met with doubt, skepticism, and even outright derision (dare we say “hate?”) in some cases.
By Lawrence G. McMillan
The Standard &Poor’s 500 Index traded right up to its recent highs today, continuing the rally that began in early June. However, for the most part, the rally has been accompanied by doubt from many areas of the investing community. As a result, by contrarian thinking, this market should have more room to go on the upside.
