The recent broad description of market action has not changed: it is led by the Dow, dragged down by NASDAQ, and it remains volatile. $SPX is caught in the middle.
Despite some very negative days (especially Tuesday, March 23rd), $SPX has not broken down. It probed below that 3870 level on Thursday, and then all of the markets rebounded. That intraday move on Thursday reached down to 3853, so perhaps we should say that support is roughly 3850 3870.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 22nd, 2021.
At face value, it appears that the bulls may be having trouble holding onto the gains from the upside breakout to new highs by $SPX. But a closer look shows the glaring discrepancy between the Dow ($DJX) and the NASDAQ-100 ($NDX; QQQ). The Dow was the first of the major indices to register a new all-time buy $NDX has lagged badly behind, having last made a new all-time high in mid-February. $SPX is caught somewhere in the middle, because it has all the Dow stocks in it and most of the $NDX stocks as well.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 15th, 2021.
Bulls took charge this past week with a furious rally on strong volume -- what turned out to be one of the strongest 5- day periods on record. This market clearly still belongs to the bulls, and the only confirmation left is a close above 3950 to set off the next leg higher.
Equity-only put-call ratios continue to move higher, despite the broad market's big rally. These indicators are thus on sell signals and will continue to be as long as they are rising.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 1st, 2021.
The heavy resistance in the 3870-3950 area has repelled several recent rally attempts. This past week, there was one day with a monster rally of over 125 points from one day's low to the next (trading) day's high. However, the last three days have wiped out that rally, and more. That remains as a formidable resistance area. Meanwhile, it seems likely that support at 3700 and perhaps 3630 will be tested. As long as those hold, one could contend that $SPX is trading in a very volatile manner within a relatively wide trading range, from 3630 to 3950, at the edges.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 1st, 2021.
$SPX has finally broken down below support. A serious bout of selling occurred yesterday (February 25th), demonstrating for the first time since last September that the bears might actually have some gumption.
Below current levels, there is support at 3700 (the late January lows) and then the major support at 3630 (the Decembers lows). If $SPX falls below 3630, that would be a major bearish development and would probably indicate that we are in a bear market.
Join Larry McMillan as he discusses the current state of the stock market on Monday, February 22nd, 2021.
