fbpx Weekly Stock Market Commentary 3/12/2021 | Option Strategist

Weekly Stock Market Commentary 3/12/2021

By Lawrence G. McMillan

Bulls took charge this past week with a furious rally on strong volume -- what turned out to be one of the strongest 5- day periods on record. This market clearly still belongs to the bulls, and the only confirmation left is a close above 3950 to set off the next leg higher.

Equity-only put-call ratios continue to move higher, despite the broad market's big rally. These indicators are thus on sell signals and will continue to be as long as they are rising.

Market breadth has been very strong in the past week, and both breadth oscillators are on buy signals. If the market is to continue on a new leg into all-time high territory, it is imperative that these oscillators get overbought (as they have) and stay there.

Volatility has remained one of the more bullish indicators all along. The $VIX "spike peak" buy signal of March 4th is still in effect, and the trend of $VIX is downward, and that is bullish for stocks.

In summary, since the $SPX chart is the most important indicator, if it closes above 3950, it's an all-clear for the bulls. If that happens, $SPX would have to fall back well into the previous trading range to cancel out that bullish signal.

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

Recent Blog Posts

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.