Stocks continue to move higher without much interruption. A very slight pullback last week triggered a couple of sell signals, but those were quickly obliterated by another strong rally this week. The market remains overbought, but "overbought does not mean sell."
$SPX traded and closed at new all-time highs on the last three days. It has now done so 13 times since October 28th. The upward trend is strong, and moving averages are rising quickly along with the Index. There is sup
ort at 3090 (last week's lows), 3065-3070 (early November lows), and then major support at 3025-3030 (the old all- time highs of July and September 2019.
Equity-only put-call ratios remain on buy signals, as the ratios continue to plunge. They are at levels last seen in early 2018.
Market breadth improved greatly this week. As a result, both breadth oscillators are back on buy signals, as their recent sell signals were canceled out. The "stocks only" oscillator is much stronger than the NYSE, but both could slip back to signals with just one or two days of strongly negative breadth.
Volatility indices have steadfastly been bullish all along, as $VIX bumps along at low levels. There will not be a sell signal from $VIX until in begins to rise -- specifically until it closes above its 200-day Moving Average.
In summary, the indicators are all bullish once again, so one needs to be long . Roll long call positions up, but do not short this market until confirmed sell signals appear.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.