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.
In what will become a semi-regular occurance, McMillan Analysis Corp. President Larry McMillan recorded a video in which he discusses his current stock market outlook. Larry discusses the current state of our option-oriented indicators which are all currently bullish. Watch below or click here.
The broad market is putting on a rather spectacular bullish performance. $SPX has repeatedly gapped to new all-time highs on at least four separate days since October 28th.
There is general support in the area of the old highs, at 3025- 3030. The next lower support at 2950 is crucial to maintaining the bull market. A close below there would be a game-changer, but it doesn't seem to be a problem at this time.
Stocks broke out to new all-time highs this week, finally getting confirmation of a "bullish" status from the $SPX chart. That goes well with the other indicators, which have all been bullish for some time already.
There should now be support near the previous all-time highs, in the 3025-3030 area. Below, there is important support at 2950. A close below there would be negative.
The rally that began two weeks ago, with an upside gap move on October 11th, continues but almost in slow motion.
We should have some resolution fairly soon as to whether this market is ready for a breakout to new highs or a return to the old trading range.
Equity-only put-call ratios remain on the buy signals that were generated a little over a week ago. Neither buy signal arose from a particularly high point on the put-call ratio chart, so they weren't the strongest of signals.
Stocks have generally reacted favorably ever since the oversold "washout" on October 3rd (or maybe you prefer the other one, on October 8th). Those created oversold conditions that have spurred buying, along with somewhat positive news on the China trade front. However, there are a couple of things that keep this chart from being all-out bullish.
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.
