A double top is now evident on the $SPX chart in the 2950 area. So for now that is strong resistance. The question is whether we're in a trading range or a stronger downturn is in store.
There are three important support levels: 2800, 2720, AND 2650. I feel that sellers would become more aggressive as each of these were violated on a closing basis. So far, none have been.
Stocks continue to rally, as they have been since March 23rd. There was a rather sharp pullback about a week ago, but it merely pulled back to the rising 20-day moving average. After having touched it, $SPX is rallying again.
There is resistance at 2955 -- last week's high -- and it appears that might be challenged again soon. Above there, there are a number of resistance areas near 3000, including the declining 200- day Moving Average.
$SPX managed to climb above the 2880 level this week and moved above 2900. Our initial estimate of resistance in the 2850- 2900 area was thus overcome, and the declining 50-day Moving Average was overcome as well. Now the next resistance level seems to be at 3000, which is where the declining 200-day Moving Average is.
The oversold rally that began on March 23rd has run into some resistance in the 2850 2900 area. The declining 50-day Moving Average of $SPX has, so far, acted as a hindrance towards further upside progress as well.
Join McMillan Analysis Corp. president, Lawrence G. McMillan, as he discusses the current state of our option-oriented indicators and what they are saying about the stock market.
Stocks have continued to rally, for the most part, although the rally was beginning to break down a bit technically until a positive news report about an antiviral for the coronavirus sickness spurred an 80- point rally in S&P futures overnight.
We continue to feel that the 2850-2900 range on $SPX represents some resistance. There is more or less resistance all the way up to the next significant level, at 3010 (which is also where the 200-day moving average is).
The oversold rally that began with an intraday reversal on March 20th has regained steam and has risen above the 20-day Moving Average, as is typucal for an oversold rally.
For the record, there is resistance in the 2850-2900 area, even though support and resistance have meant much to this fast-moving market.
Equity-only put-call ratios are on buy signals. The current buy signals occurred right near the lows, on March 23rd and will remain in effect as long as the ratios are declining.