By Lawrence G. McMillan
On Monday, stocks rallied early, and held onto the gains throughout the remainder of the day. Overnight, S&P futures were up another 6 points in Globex trading. In other words, the upside momentum is strong and the bears seem to have disappeared. Support is at 1615.
Equity-only put-call ratios turned sharply lower yesterday, thus reinforcing the new buy signals that just occurred. The Total ratio has done the same. They will remain bullish as long as they don’t exceed last week’s peaks. Given the numbers that are coming off these 21-day moving averages from 21 days ago, there is almost no chance that those recent peaks will be exceeded. Hence, the buy signals are very strong...
This commentary was excerpted from this morning's edition of The Daily Strategist newsletter.
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