The important level for $SPX remains 1340

By Lawrence G. McMillan

The market had all kinds of good news hurdles to overcome yesterday, and it did a pretty good job of it.   The number of traders looking to sell when either a) the Greek agreement was reached, and/or b) the Dow hit 13,000.  Both of those occurred yesterday morning, and the market did indeed fall back.  But then it rallied later on, posting small gains for the day.  To me, that was fairly bullish action.  A microcosm of that action took place overnight as well, with the futures falling and then recovering.  The important level for $SPX remains 1340.  If that is broken, then a correction can take place.  Otherwise, as long as that support holds, the bulls are in charge.

The equity-only put-call ratios are going sideways over the past few days.  They will remain on buy signals, but they have stopped declining.  At the moment, that's not yet a problem, but if they start to rise, it will be...

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