fbpx Weekly Stock Market Commentary 9/10/2021 | Option Strategist

Weekly Stock Market Commentary 9/10/2021

By Lawrence G. McMillan

After making a new all-time high on September 2nd, $SPX has failed to add to the gains. Perhaps the sideways movement is all the correction that this market needs, similar to what we saw at the end of July. Regardless, the $SPX chart remains bullish in that it is above support and all of its major trendlines are moving higher.

Both equity-only put-call ratio charts are "officially" on buy signals. The standard ratio (Figure 2) turned downward in early August and has been on a buy signal since then. But the weighted ratio has been moving sideways for quite some time, and has only now been given the "buy" status by our computer analysis programs.

Breadth has been -- and continues to be -- a problem. After attempting to show some improvement at the end of August, both breadth oscillators have rolled back over to sell signals this week.

Meanwhile, the indicators related to implied volatility continue to be quite bullish in their outlook for the stock market. The $VIX "spike peak" buy signal is still in place, despite a slight rise in $VIX this week as the stock market pulled back a little.

As for the trend of $VIX, it remains downward, in that the 20- day Moving Average of $VIX and $VIX itself are both still below the declining 200-day MA.

So, despite some hesitation this week by $SPX, we remain bullish -- but not complacent. The $SPX chart has an upward trend, and that is the most important thing.

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.