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The following Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.

First, let's review the intermediate-term indicators, for longer- term traders may want to stick primarily with them. The $SPX chart is in an uptrend, and will remain so as long as the index is above its rising 20-day moving average.

The equity-only put-call ratios remain solidly on buy signals.

Market breadth is back on buy signals again and only modestly overbought.

The major trend of $VIX is still down, arguably. That is bullish as well.

Those are the reasons to be bullish. What concerns me, though, is the number of negative divergences that have occurred -- along with the modest overbought condition of the breadth oscillators. These include cheap stock options, $VIX edging higher, among others. Even though the intermediate-term remains bullish, a sharp short-term selloff seems likely in light of these divergences.