fbpx S&P 500 | Option Strategist

S&P 500

Weekly Stock Market Commentary 2/3/2023

By Lawrence G. McMillan

The long-awaited breakout over what had become triple resistance at 4100 has occurred. $SPX closed above that level on February 1st and then added another strong day on top of that on February 2nd, thus confirming the breakout with a two-day close above 4100. That should lead to a challenge of the next resistance levels. First, there is the gap just above 4200 that created the island reversal back in August, which led to the downward leg into October at that time. Next up after that are the August highs at 4300.

Larry McMillan Stock Market Update Video 1/30/2023

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on January 30, 2023.

Weekly Stock Market Commentary 1/27/2023

By Lawrence G. McMillan

Stocks have moved back and forth through several supposed minor support and resistance levels this week. As a result, the picture has developed into that of a wider trading range, awaiting a breakout in one direction or the other. On the upside, there is double resistance at 4100, where the market topped out twice in early December. On the downside, there is support in the 3760-3800 area, where the market bottomed in late December.

Larry McMillan Stock Market Update Video 1/23/2023

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on January 23, 2023.

Weekly Stock Market Commentary 1/20/2023

By Lawrence G. McMillan

Stocks started the year off strongly, rallying with expanding breadth and favorable put-call ratio buy signals. However, in the end nothing changed as once again $SPX was unable to penetrate through the downtrend line that defines this bear market, as well as failing to rise up through its declining 200-day moving average. So, stocks have fallen back from there. The first support level at 3940 has been violated, and the next one at 3900 might be in jeopardy, too. That leaves 3760-3840 as the next support area. A failure there, and one can state with certainty that the bear market has resumed.

Larry McMillan Stock Market Update Video 1/17/2023

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on January 17, 2023.

Weekly Stock Market Commentary 1/13/2023

By Lawrence G. McMillan

The stock market has put on a good show of strength this week, after breaking out on the upside from the trading range that had held prices in check throughout the last half of December. $SPX is now challenging the downtrend line of this bear market as well as its declining 200-day Moving Average, both of which are near 4000. A clear breakout above 4100 would be very bullish.

Interest Rates and the Huge S&P Futures Premium

By Lawrence G. McMillan

An item that has been affected by higher interest rates is the premium on S&P (and other) Index futures. The premium on a stock index futures contract is related to dividends (higher dividend payouts decrease the premium on the futures) and interest rates (higher interest rates increase the premium on the futures). We received this question recently, and I realized once again that newer traders may not have seen this before:

Interest Rates Are Having An Affect On Derivatives (Preview)

By Lawrence G. McMillan

It turns out that the increase in interest rates has gone on long enough and raised rates enough that some things regarding derivatives are occurring that haven’t been in place in quite some time – or ever, for that matter. We are going to address a couple of related topics. Newer option traders might not have seen some of these things before, since essentially interest rates have been at or near zero since 2009, until last year.

Larry McMillan Stock Market Update Video 1/9/2023

By Lawrence G. McMillan

Join Larry McMillan as he discusses the current state of the stock market on January 9, 2023.

Pages

Option Strategist
Blog Search

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

-->