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.
Stock market guru, Lawrence G. McMillan, discusses the current state of the stock market. Watch below.
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.
McMillan Analysis Corp. president, Lawrence G. McMillan, discusses the current state of the stock market. Watch below.
Overbought conditions proved to be more than the positive charts of $SPX and $VIX could handle, and there was a sharp, but short-lived correction this past week. That correction ripped right through the first support level at 3090 on the $SPX chart. However, support held at 3070 near an area (3065- 3070) that had previously been support, so it is now reinforced.
John Bollinger has done a lot of work discussing the ramifications of the width of Bollinger Bands. In short, if the Bands are too close together (too compressed), then volatility is “too low,” and the market is due for an explosive move – probably to the downside. Conversely, if the Bands are quite far apart, then volatility has gotten “too large” and a contraction in volatility – and probably a stock market rally – is at hand.
Stocks continue to move higher without much interruption. A very slight pullback last week triggered a couple of sell signals, but those were quickly obliterated by another strong rally this week. The market remains overbought, but "overbought does not mean sell."
$SPX traded and closed at new all-time highs on the last three days. It has now done so 13 times since October 28th. The upward trend is strong, and moving averages are rising quickly along with the Index. There is sup
Watch Option Strategist, Larry McMillan discusses the current state of the option oriented indicators and what they are saying about the stock market.
The broad market, as measured by the S&P 500 Index ($SPX) has continued to rise, making new all-time intraday or closing highs on six consecutive recent trading days, culminating (so far) with November 19th. This move has not been reflected in some of the technical indicators, however, and so there are some divergences, sell signals, and extremely overbought conditions arising.
The broad stock market continues to plow ahead, as $SPX has made new closing or intraday all-time highs on 10 of the last 14 days, including the last two. Thus, momentum is strong and the $SPX chart remains bullish.
There is a modest support level at 3065 (the early November lows) and a more valid support at 3025-3030 (the previous all-time highs). It would be disappointing for the bulls to see 3025 taken out.
