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Weekly Commentary 10/28/2011

By Lawrence G. McMillan

Today’s move saw $SPX blow right through the resistance at 1260 and also through the 200-day  moving average at 1272. Those are both significant levels to have overcome.  The market may have to spend some time around the 200-day moving average, as it often does when it passes through that level, but the next higher targets of 1310 and then the yearly highs at 1350-1370 should be within range fairly soon.

Equity-only put-call ratios remain on buy signals.

Market breadth oscillators have been on buy signals for a couple of weeks, but have recently
been overbought.

Market breadth oscillators have been on buy signals for a couple of weeks, but they have recently done so.

In summary, the pieces are in place for an extension of this rally, in line with these intermediate-term indicators and the other indicators

Click here to view this week's charts »

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