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Removing the "bearish" designation?

By Lawrence G. McMillan

If the current rally levels hold, it will improve the $SPX chart to neutral, removing the "bearish" designation that we have had on it for weeks.  In fact, if $SPX can close above 1310, we would upgrade our classification of the chart to bullish. 

The rally is being backed by technicals that are turning bullish, too.  $VIX is now at 17.41, below the 17.70 level that we said would constitute a buy signal for that index, too.  As with $SPX, this move in $VIX breaks the bearish trend that was in place.

Breadth is strong again today, so the breadth oscillators are moving deeper into overbought territory...

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