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.

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.

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.

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.

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.

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).

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.

By Lawrence G. McMillan

Everyone was worried about the FOMC announcement this week, but it turned out to be benign. But, on Thursday President Trump tweeted that there would be more Chinese tariffs. Whether the market over-reacted to this tweet or whether there were just a lot of traders looking to lighten up, a torrent of selling was unleashed.

By Lawrence G. McMillan

Stocks made new all-time highs again this week, overcoming some negativity from a few areas. That negativity remains, but the $SPX chart itself is strong, and so are the NASDAQ Composite and the NASDAQ-100 ($NDX; QQQ).

Early in the week, $SPX pulled back for a couple of days, making daily lows just above 2970. That is the first support area. Just below that is another support area, at 2950-2960.

By Lawrence G. McMillan

After an impressive month-and-a-half rally from the beginning of June to mid-July, it looks like a correction might finally be at hand. There is support at 2950-2960 and 2890-2910.

The equity-only put-call ratios are still on buy signals, according to the computer analysis programs that we use to track these charts.

Market breadth has weakened a bit, and both breadth oscillators have rolled over to sell signals as of the close of trading on July 17th.