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Market Commentary 4/15/2011

By Lawrence. G. McMillan

$SPX touched support and its rising 20-day moving average at 1310, and probed slightly below that level today before  rallying.

Perhaps more interesting is the fact that the equity-only put-call ratios have remained on buy signals throughout the pullback over the last week.

There was similar action in the volatility indices ($VIX and $VXO).  The calm in these volatility indices is another bullish indication, despite the falling broad market.

Only breadth is giving a negative signal at this time.

In summary, the bears have growled a bit this week, but the market has pulled back to its rising moving average in an orderly fashion -- alleviating its overbought breadth condition -- while the other intermediate-term indicators remain positive.  This is a positive combination from our point of view.

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