$SPX managed to climb above the 2880 level this week and moved above 2900. Our initial estimate of resistance in the 2850- 2900 area was thus overcome, and the declining 50-day Moving Average was overcome as well. Now the next resistance level seems to be at 3000, which is where the declining 200-day Moving Average is.
The oversold rally that began on March 23rd has run into some resistance in the 2850 2900 area. The declining 50-day Moving Average of $SPX has, so far, acted as a hindrance towards further upside progress as well.
Join McMillan Analysis Corp. president, Lawrence G. McMillan, as he discusses the current state of our option-oriented indicators and what they are saying about the stock market.
Stocks have continued to rally, for the most part, although the rally was beginning to break down a bit technically until a positive news report about an antiviral for the coronavirus sickness spurred an 80- point rally in S&P futures overnight.
We continue to feel that the 2850-2900 range on $SPX represents some resistance. There is more or less resistance all the way up to the next significant level, at 3010 (which is also where the 200-day moving average is).
The oversold rally that began with an intraday reversal on March 20th has regained steam and has risen above the 20-day Moving Average, as is typucal for an oversold rally.
For the record, there is resistance in the 2850-2900 area, even though support and resistance have meant much to this fast-moving market.
Equity-only put-call ratios are on buy signals. The current buy signals occurred right near the lows, on March 23rd and will remain in effect as long as the ratios are declining.
The oversold rally that was underway last week ran out of steam as soon as it ran into the declining 20-day moving average of $SPX. There is now resistance at 2650. The 2175-2190 level still qualifies as support, and it has not been tested at all.
The equity-only put-call ratios remain on buy signals, despite the fact that they have curled up ovhe past few days. These buy signals would be canceled if the ratios rise to new highs.
