Join McMillan Analysis Corporation president, Lawrence G. McMillan, as he discusses the current state of the stock market.
A week ago, $SPX was still pushing higher. Then, in the blink of an eye, $SPX gapped sharply downward on Monday morning -- leaving a huge gap on the chart that likely isn't going to be filled anytime soon.
Nearly every indicator we have is in oversold territory, and there will be buy signals in the relatively near futures, but there are none at this time. Support levels don't mean much right now, so it's fruitless to try to identify them.
Join McMillan Analysis Corporation president, Lawrence G. McMillan, as he discusses the current state of the stock market.
A decoupling of sorts has appeared in the market this past week. It's a bit reminiscent of the "Nifty 50" group back in the 1970's, but if today's version of those high-flyers really does have a serious correction, it will drag everything down with it, just like it did in 1973-74.
Watch McMillan Analysis Corporation president, Lawrence G. McMillan, discuss the current state of the stock market.
The S&P 500 Index ($SPX) broke out to new all-time highs again this past week, and now has closed at a new all-time high or traded at a new intraday all-time high on six of the last seven trading days. That keeps the $SPX chart bullish. There should be some support near the 3340 area, which was the old highs that were exceeded this week.
The swift rally that took place over the last week has left the indicators in a mixed state, with some of the longer-term indicators still in a bearish mode after the major overbought conditions that existed in late January. On the other hand, short-term indicators gave some oversold buy signals, and those have certainly carried the day this week.
Watch the recording of Lawrence G. McMillan's "The Current State of The Market-Predicting Option Indicators" Festival of Traders webinar from yesterday below.
Watch option strategist, Lawrence G. McMillan, discuss the current state of the stock market.
The huge rally in stocks that began on October 4th, 2019, is in jeopardy. A couple of large down days have broken the steepness of the uptrend, but not the uptrend itself.
So, the $SPX chart is weakening, but hasn't completely capitulated to the bearish case yet. There is resistance at 3340 (the all-time highs) and there is support, as noted, at 3210. So if it continues to bounce around in that range, it would just be "re-generating," but a breakout in either direction should be significant.
