Weekly Stock Market Commentary 7/19/2019

By Lawrence G. McMillan

After an impressive month-and-a-half rally from the beginning of June to mid-July, it looks like a correction might finally be at hand. There is support at 2950-2960 and 2890-2910.

The equity-only put-call ratios are still on buy signals, according to the computer analysis programs that we use to track these charts.

Market breadth has weakened a bit, and both breadth oscillators have rolled over to sell signals as of the close of trading on July 17th.

Volatility has remained suppressed, and that is generally bullish for stocks. $VIX continues to muddle along in the 13-15 area, although it did probe below 13 a couple of times recently.

So, the majority of the evidence is still bullish especially the $SPX chart itself as it is trending higher, and volatility as it is NOT. Emerging sell signals could signal a short-term problem, but as long as major support at 2890-2910 remains intact, the intermediate-term outlook is positive.

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