The correction that took place following June option expiration (the 3rd Friday) lasted just about a week, and prices have rallied since then. That decline bottomed out at about 4330 very nearly the peak of last August. So that is the first support level now. There is further support at 4200, the level which had represented resistance for so long. Any pullbacks should find ample support there, but if $SPX were to fall back below 4200, that would represent a very bearish development.
Join Larry McMillan as he discusses the current state of the stock market on June 26, 2023.
When $SPX broke out over 4300 on June 9th, a strong rally was unleashed. Perhaps that rally got carried away, as several indicators moved into overbought territory, and the Index itself traded above its +4sigma "modified Bollinger Band" (mBB). That exhausted a lot of buying power it seems, and now the Index is pulling back.
Join Larry McMillan as he discusses the current state of the stock market on June 20, 2023.
Now that $SPX has broken out of the extended trading range (essentially 3800-4200, which lasted for over six months), it is gaining momentum as traders are trying to "catch up." This is beginning to create overbought conditions, but "overbought does not mean sell."
Join Larry McMillan as he discusses the current state of the stock market on June 12, 2023.
The broad stock market confirmed the breakout over 4200, with only a minor consolidation. Now it is attempting to break out above 4300, which is the next resistance level. If that is accomplished, then there should be somewhat clear sailing overhead for a while.
Equity-only put-call ratios remain bullish, as they continue to fall. They are in overbought territory, but "overbought does not mean sell."
Join Larry McMillan as he discusses the current state of the stock market on June 5, 2023.
The market finally looks like it is breaking out on the upside. After numerous failed attempts to exceed and hold above 4200, $SPX seems to be on the way to doing just that. If it closes above 4210 today (June 2nd), that will be confirmation of an upside breakout.
The next target and resistance is the 4300 level the highs of last August. If that can be overcome, then the picture is quite bullish, with only 4650 (the highs of March 2022) and 4800 (the all- time highs) as obvious resistance areas.
Join Larry McMillan as he discusses the current state of the stock market on May 30, 2023.
