This market is still akin to a runaway freight train. The momentum is strong and positive, and there are no confirmed sell signals at this time. This has made the market "overbought" in a general sense, but subscribers know that "overbought does not mean sell." Only confirmed sell signals mean "sell."
Join Larry McMillan as he discusses the current state of the stock market on Monday, April 12th, 2021.
The recent pattern of the markets has changed slightly. Yes, $SPX is continuing to make new all-time highs almost daily, but now NASDAQ ($NDX; QQQ) is catching up and the Dow ($DJX; DIA) is slowing down.
We occasionally publish the composite chart of $VIX dating back to near its inception. For these purposes, we use the original $VIX – $VXO – since it has the longest price history. That history is shown in the chart on the below. It has generally been the case that $VIX rises early in the year, peaks in the spring, declines into the late summer, and then begins a rapid acceleration in October, before finally tailing off towards the end of the year.
Join Larry McMillan as he discusses the current state of the stock market on Monday, April 5th, 2021.
The bulls may have kick-started another new upward leg by the fact that $SPX broke out to a new all-time high and $VIX broke down to a new relative one-year low at the close on Friday, April 1st. This comes amidst improving internals, but skeptics still exist. The first upside target -- if this is truly a new leg to the bull market -- is 4068. Conversely, a close below 3870 would negate the recent upside breakout.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 29th, 2021.
The recent broad description of market action has not changed: it is led by the Dow, dragged down by NASDAQ, and it remains volatile. $SPX is caught in the middle.
Despite some very negative days (especially Tuesday, March 23rd), $SPX has not broken down. It probed below that 3870 level on Thursday, and then all of the markets rebounded. That intraday move on Thursday reached down to 3853, so perhaps we should say that support is roughly 3850 3870.
Join Larry McMillan as he discusses the current state of the stock market on Monday, March 22nd, 2021.
