fbpx Weekly Stock Market Commentary 7/5/2019 | Option Strategist

Weekly Stock Market Commentary 7/5/2019

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.

The Option Strategist Newsletter $29 trial

Share this

Option Strategist
Blog Search

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.