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Put Call Ratio

Weekly Stock Market Commentary 10/11/2019

By Lawrence G. McMillan

Violent market movements have followed nearly every piece There are both bearish and bullish signals in place, although the bears are being put to the test today.

Weekly Stock Market Commentary 10/4/2019

By Lawrence G. McMillan

The major indices all broke down this week, as the accumulated pressure that had been building up finally was released after a poor economic survey. There is resistance at the old highs (3020-3025) and now at 2940, where the breakdown took place. There is support at 2825, and then at 2720.

Both equity-only put-call ratios rolled over to sell signals. They are now trending higher and, as long as that is the case, these sell signals will remain in place.

Put-Call Ratios Roll Over

By Lawrence G. McMillan

..The equity-only put-call ratios have both rolled over to sell signals. As we have pointed out, the standard ratio started moving higher a few days ago, but the weighted ratio just turned upward in the past two days. The computer analysis programs did not confirm sell signals from either ratio until after the close on October 2nd. So, these are “fresh” sell signals. The computer analysis was influenced by the fact that some rather large numbers were coming off the 21-day moving averages of these ratios, but as it turned out even larger numbers came onto the averages, and they rose anyway – eventually setting off these sell signals...

Weekly Stock Market Commentary 9/27/2019

By Lawrence G. McMillan

Stocks have struggled a bit over the past week, but not to any great extent. Support has held in the 2950-2960 range. That has preserved the bullish gap on the chart that extends down to major support at 2940. If $SPX were to close below 2940, that would be a direction-changer, from bullish to bearish. But so far, it hasn't even been tested.

Weekly Stock Market Commentary 9/20/2019

By Lawrence G. McMillan

Once $SPX broke out over resistance at 2940, especially considering that it was a strong gap breakout, it has not looked back. There was a slight consolidation in the 2960-2980 range, and now the Index is apparently on its way to challenge the all-time highs at 3025. The chart will be bullish as long as $SPX continues to close above 2940.

Equity-only put-call ratios continue to drop and thus they remain on the buy signals that were generated in late August.

Weekly Stock Market Commentary 9/6/2019

By Lawrence G. McMillan

$SPX has broken out above resistance at 2950, and that has changed the picture to a bullish one. There is now strong support at 2940 the top of the previous trading range that $SPX traversed six times (three up, three down) during the month of August. A close back below 2940 would be negative, because that would bring $SPX back into the trading range once again.

Teh equity-only put-call ratios remain on buy signals, and now the Total put-call ratio has joined in with a buy signal as well.

Weekly Stock Market Commentary 8/30/19

By Lawrence G. McMillan

Once again, $SPX has traversed the 2825 to 2950 range twice in the past week. First, it fell nearly the entire length of the range in one day (August 23rd) and then has come all the way back to the top of the range in the remaining four days. A breakout above 2950 would be bullish, but a breakdown below 2825 would be very bearish.

In a somewhat major new development, both equity-only put-call ratios have rolled over to buy signals in the last two days.

Weekly Stock Market Commentary 8/23/2019

By Lawrence G. McMillan

The $SPX chart remains bearish. There is support at 2825. There is probably stronger support at 2720-2730, the area of the March and May lows. As for resistance, the major resistance area remains 2940-2950, which is not only the recent tops, but is also the psychological resistance caused by the fact that the July 2019 activity look like a false upside breakout to new all-time highs.

The equity-only put-call ratios remain on sell signals (Figures 2 and 3).

Weekly Stock Market Commentary 8/16/2019

By Lawrence G. McMillan

Stocks are still in a negative mode, despite the presence of some very strong rally days emanating from oversold conditions.

The 2940-2950 area represents resistance for several reasons. Meanwhile, there is support at 2825, where $SPX has bottomed on three separate days recently. Below there, the support at 2720-2730 is more identifiable, for that's where $SPX bottomed out in both March and May.

Equity-only put-call ratios continue to rise, thus remaining on sell signals.

Weekly Stock Market Commentary 8/9/2019

By Lawrence G. McMillan

The market took a nasty turn downward at the beginning of the week, violating support levels. But that created oversold conditions, and a strong overold rally has followed.

Chart-wise, there is resistance at 2950 and 2980. There is a new support level, at about 2825 (this week's lows), and then below that at 2720-2730, the March and May lows.

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