By Lawrence G. McMillan
Stocks broke out to new all-time highs this week, finally getting confirmation of a "bullish" status from the $SPX chart. That goes well with the other indicators, which have all been bullish for some time already.
There should now be support near the previous all-time highs, in the 3025-3030 area. Below, there is important support at 2950. A close below there would be negative.
Equity-only put-call ratios remain strongly on buy signals. Not only has call buying been fairly heavy recently, but there are some very large numbers coming off the moving averages from 21 days ago.
Market breadth has been positive, and the breadth oscillators remain on buy signals. However, breadth has not been as strong as we'd like to see it.
The whole volatility complex is quite bullish at this time, too. It will remain that way unless $VIX closes above 16.
In summary, this is about as bullish as a complete set of indicators can get. But things can change quickly, especially in these days of tweets and trade wars. So, do not become complacent. Roll profitable long calls up to higher strikes, and pay attention to the indicators for any change of direction.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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