By Lawrence G. McMillan
The S&P 500 Index ($SPX) has made new all-time closing highs on the last three days. Other indices are following most notably the Dow ($DJX) and NASDAQ (QQQ and Composite).
There is support on the $SPX chart at the old highs (2940- 2950) and below that, where there was more work done, at 2890- 2910.
The equity-only put-call ratios remain strong and on buy signals, as those ratios continue to drop rapidly.
Both breadth oscillatorsaare on buy signals and both are in overbought territory. That's a good thing when $SPX is making new all-time highs.
$VIX has dropped quite a bit in the last week and is now approaching 12. In any case, $VIX is in a bullish spot, and would only turn negative for stocks if it were to climb above 17.
In summary, we remain bullish along with our indicators.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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