fbpx Weekly Stock Market Commentary 7/12/19 | Option Strategist

Weekly Stock Market Commentary 7/12/19

By Lawrence G. McMillan

New all-time highs were registered this week by the S&P 500 ($SPX), Dow ($DJX), NASDAQ Composite, and NASDAQ-100 ($NDX; QQQ). However, it is not necessarily a good thing when the large caps are leading the rally, but that's what's happening now.

There is support for $SPX above the recent breakout level (which was briefly re-tested) at 2950-2960. Below there, there is a better support level which has been tested a few times, at 2890-2910. A violation of that lower level would be bearish. Otherwise, the $SPX chart remains in an uptrend.

Equity-only put-call ratios remain on buy signals. Both ratios made new relative lows yesterday, so they are still strong buy signals. They will remain so until they roll over and begin to rise.

Market breadth has not been strong, but the breadth oscillators are still on buy signals at this point.

Volatility -- both implied and realized -- remains docile at this time, and that is bullish for stocks. There really aren't any worries for stocks as long as $VIX remains below 17.

In summary, the indicators are bullish and thus so are we. While there are some overbought conditions, and there is some lagging in breadth, those things don't really matter as long as $SPX remains above support.

This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.

The Option Strategist Newsletter $29 trial

Share this

Option Strategist
Blog Search

Recent Blog Posts

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

-->