$SPX has finally broken down somewhat and sell signals have arisen in many areas. This has been enough for us to declare our “core” position as bearish, but the bulls still have a chance to rescue things. To the media, the reason for the selling is mainly the coronavirus, or perhaps earnings, or maybe Boeing, but in reality the market was so overbought that any reason for selling was going to cause some decline.
President of McMillan Analysis Corp., Lawrence G. McMillan, discusses the current state of the stock market and his option-oriented indicators. Watch below:
The bullish trend of $SPX remains intact. Having said that, the $SPX chart is extended (overbought), as are many other indicators. $SPX is nearly 60 points above its rising 20-day moving average. Hence a fairly sharp pullback of 60 or 70 points wouldn't change the trend, but it might be a bit shocking to the bulls.
Join option strategist, Lawrence G. McMillan, as he discusses the current state of the stock market and his option-oriented indicators. Watch below:
The stock market continues its remarkable run, and it continues to look more and more like January 2018 every day. That's bullish news for the short term, but extremely negative news for the intermediate-term.
Join McMillan Analysis Corp. president, Lawrence G. McMillan, as he discusses the current state of the stock market. Watch below
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.
There was wild overnight action during the night session on Tuesday January 7th. S&P futures dropped 54 points immediately after news that Iran had fired missiles at U.S. installations in Iraq. Obviously, prices have recovered since then, but perhaps we can get a glimpse into what might happen should a “real” decline of that magnitude take place.
Option Strategist, Larry McMillan, discusses the current state of our option-oriented indicators. Watch below:
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.
