The market remains overbought in many areas, and confirmed sell signals are beginning to appear. However, the most important indicator (the chart of $SPX) remains in a positive uptrend. There is support near 3725, more important support at 3630-3650, and then 3550.
A couple of years ago, we put together some facts and came up with an “early warning" sell signal, based on historical volatility of $SPX.
Join Larry McMillan as he discusses the current state of the stock market on Monday, January 11th, 2021.
On Monday, January 4th, the new year got off to a rocky start as selling built and exploded into a 90+ point selloff in $SPX. However, the decline bottomed at 3662, and the market has been rallying ever since. That brief selloff seems to have rejuvenated the market, and not only are new all-time highs being made, but they have been accompanied once again by rapidly expanding breadth.
Join Larry McMillan as he discusses the current state of the stock market on Monday, January 4th, 2021.
It looks like things are going to be very interesting in the new year. The market is strong, as evidenced by new all-time highs in all of the major indices this past week $SPX, $NDX, $DJX, and $RUT (although $RUT has faltered a bit in the last couple of days). Since price action is the most important indicator, the overall trend remains bullish as long as $SPX holds above support.
Join Larry McMillan as he discusses the current state of the stock market on Monday, December 28th, 2020.
The bears took advantage of a small window before the "Santa Claus rally" begins to drive $SPX down a bit. Once again, support in the 3630 3650 area has held. We are still viewing 3550 as the more important support area, for if that were broken, then the $SPX chart would take on a bearish aura.
Equity-only put-call ratios continue to decline, and thus they remain on buy signals. They are extremely overbought, but that is not a sell signal.
Join Larry McMillan as he discusses the current state of the stock market on Monday, December 21st, 2020.
The major indices -- $SPX/SPY, $NDX/QQQ, $DJX/DIA, and $RUT/IWM -- are all at new all-time intraday and closing highs. Clearly, this market has momentum.
