The stock market continues to put on a tremendous display of bullishness. There was some brief but heavy selling in relation to the military action in Iraq, but most of the selling came in the overnight sessions and was largely reversed by the time the NYSE opened the next day.
With most of the major averages making new all-time highs, their charts remain bullish. There is support at 3190-3210. There is further support at 3150 and 3070.
Stocks backed off today, but the bull market is still intact so far. There is support on the $SPX chart at the various horizontal red lines in Figure 1. There isn't MAJOR support, though, until you get down to 3070.
Equity-only put-call ratios are at extremely low levels, due to heavy call buying during most of the recent three-month stock market rally. But they are not on confirmed sell signals yet.
The Fear Of Missing Out (FOMO) appears to be the theme in recent days. $SPX and other major indices are roaring ahead, despite a relatively narrow number of stocks carrying the load. But one thing is sure: for now, the $SPX chart is extremely strong.
The market could hardly be stronger than it is. $SPX, NASDAQ, and the Dow are making new intraday and closing highs almost daily.
There is now support at 3150, which had been a minor resistance area in late November and early December, before the Index blasted up through there on December 12th -- and hasn't stopped since. Below that, there are support areas at 3130 (minor), 3065-3070 (strong) and 3025-3030.
The trend of the $SPX chart is clearly bullish: higher highs and higher lows, with all significant moving averages trending upward. There should now be some support near 3150, which was a minor double top prior to the latest move to new highs. Below that, the December lows at 3070 provide stronger support.
Equity-only put-call ratios are arguably our most bearish indicators at the moment. Both are on sell signals now.