By Lawrence G. McMillan
Almost like clockwork, the pendulum of this market swings back and forth within the bullish trading range that $SPX occupies. As long as $SPX stays within this range, the overall picture is bullish.
However, this time around, we are starting to see some more deterioration in some other technical indicators. In particular, the equity-only put-call ratios are beginning to seriously weaken. Moreover breadth indicators are on sell signals.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Since the broad stock market, as measured by the Standard & Poor’s 500 Index, bottomed in early June, the ensuing rise has been met with doubt, skepticism, and even outright derision (dare we say “hate?”) in some cases.
By Lawrence G. McMillan
This week's selling drove $SPX down to the lower end of its bullish trading channel (see Figure 1). The selling managed to dissipate right near the lower channel, and so the bullish pattern is maintained.
Equity-only put-call ratios have remained bullish throughout this recent decline, just as they have generally remained bullish since generating intermediate-term buy signals right near the June stock market lows.
Market breadth wavered early in the week, but are back on buy signals now.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — As you may be aware, we’ve been bullish on the broad stock market since shortly after the early June lows.
By Lawrence G. McMillan
$SPX exceeded its early July highs today. That is a new high for this recovery rally that began in early June. As a result, the classic bullish pattern of higher highs and higher lows on $SPX has expanded and been strengthened by adding this new high (see Figure 1).
Equity-only put-call ratios remain strongly on buy signals. They continue to decline, and that is bullish for stocks.
Market breadth has been reasonably strong of late. Breath indicators are on buy signals, and they are modestly overbought.
By Lawrence G. McMillan
The market sold off sharply on Tuesday when Fed Chairman Bernanke spoke, but then staged a strong reversal rally – closing hear the highs of the day. This continues the strong pattern on the $SPX chart, and we expect a successful challenge of the 1375 resistance area shortly.
Equity-only put-call ratios continue to decline, and that is bullish for stocks. They have not declined so far that they would be considered overbought. Therefore, these intermediate-term indicators are pointing strongly higher.
By Lawrence G. McMillan
In late June and early July, $SPX staged a strong upside breakout, taking the average to new relative highs (and most other major averages followed). This created the very bullish pattern of higher highs and higher lows on the $SPX chart, after the bottom in early June. As the market made these new relative highs, it became extremely overbought. $SPX has backed off about 50 points since July 3rd, alleviating that overbought condition.
Equity-only put-call ratios remain on buy signals.
By Lawrence G. McMillan
MORRISTOWN, N.J. (MarketWatch) — Three week ago, we wrote that strong buy signals were in place . For the most part, those buy signals remain in place today. Therefore we continue to look for higher prices ahead.
By Lawrence G. McMillan
In yet another display of the “nothing is ever my fault” philosophy, a class action lawsuit has been filed against VelocityShares and Credit Suisse on behalf of anyone who purchased the Daily 2x Long VIX Short-term ETNs (TVIX) from November 30, 2010, through March 22, 2012.
TVIX shares were first issued on November 30, 2010, so the lawsuit covers nearly the entire length of time that they have existed – from day 1 through the day that Credit Suisse began issuing new shares again (this past March).
By Lawrence G. McMillan
$SPX broke out on June 29th, and has since added togains, exceeding the early June highs. This creates the bullish pattern of higher highs and higher lows on its chart. $SPX could easily challenge resistance at 1390-1400 in the immediate future.
Equity-only put-call ratios remain on buy signals.
Market breadth was very strong again, and now the breadth indicators are on buy signals but are quite overbought.
