By Lawrence G. McMillan
On Friday, we said that if the bulls could hold onto the opening gains throughout the day, then last week’s action would likely be viewed merely as a very short-term correction. Not only did they hold onto those gains, but they closed prices at the high of the day. Then, Sunday night, the bulls kicked in with another rally, pushing S&P futures up 7 points (or more) overnight. This is strong action, but a close above the highs at 1530 is needed to completely reaffirm that the bulls are back in control. Last week’s action did re-confirm that the support just below 1500 is strong.
Equity-only put-call ratios appear to be moving higher (thus, entering sell signals) to the naked eye, but the computer programs that we use to analyze these charts do not yet rate them as “sell.” In part, this is because some relatively large numbers are coming off the 21-day moving average over the next few days...
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