By Lawrence G. McMillan
The broad stock market, as measured by $SPX, is locked in a very tight range -- and has been since new all-time highs were reached on July 14th. Overall, though, $SPX remains in a strong uptrend, with support at 2160.
Equity-only put-call ratios remain on buy signals, as they continue to move lower on their charts. They are now reaching the lows of 2015.
Market breadth has been in a confusing, back-and-forth pattern. Every day from July 12th through July 27th, breadth alternated between plus and minus. The breadth oscillators remain on buy signals, and they remain in overbought territory.
Volatility indices continue to loll around at low levels, and as long as that is the case, stocks can rise.
In summary, the indicators are all positive, and so we remain bullish. Yes, there are overbought conditions, and a short-lived correction is possible at any time. But a true market top will not form until we see some sell signals from our indicators.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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