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By Lawrence G. McMillan

...As a result, not only is the $SPX trading range (1215-1230 on the downside, and 1275-1290 on the upside) still intact, but it is actually narrowing.  There is a downward-sloping trendline overhead, and an upward-sloping trendline beneath.  Something is going to have to give here – and soon.  The fact that volatility remains high and put volume remains heavy should be a contrary, positive indicator, but as long as the market continues to react violently to these European news "bits," there will continue to be demand for protection.

The breadth oscillators remain on buy signals, as do the equity-only put-call ratios.  The weighted put-call ratio is still something of a concern, as it has been going sideways for a week, and has not broken to new lows.  The computer program that we use to interpret the charts continues to rate the weighted ratio as being on a buy signal, but it really needs to drop in order to reinforce that buy signal...

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