By Lawrence G. McMillan
Earlier this week, it appeared that the rally that began at the end of October was lagging. But then Thursday, the market blew through resistance at 2040 and reaffirmed the bullish case with authority. A violation of the 1990 would remove the "bullish" label from the $SPX chart.
Equity-only put-call ratios remain on buy signals, as they continue to decline (Figures 2 and 3).
Market breadth indicators have been flip-flopping a bit lately, but have righted themselves in the last two days, so the oscillators remain bullish.
Volatility indices remain bullish as well, as there is now an established downtrend in $VIX. Thursday saw the lowest $VIX close since mid-August.
In summary, the indicators remain bullish, therefore so does the intermediate-term outlook -- despite the large advance that has already taken place.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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