By Lawrence G. McMillan
$SPX broke out to new all-time intraday and closing highs this week. New all-time closing highs were made on 4 of 5 consecutive days, which confirmed the move, so the $SPX chart is bullish once again.
Equity-only put-call ratios have finally rolled over to buy signals. To the naked eye, they rolled over more than a week ago, but to the computer, the confirmed buy signals only arrived a couple of days ago.
Market breadth has remained positive, and the breadth indicators thus continue to remain on buy signals.
Volatility indices ($VXST, $VIX, and $VXV) have remained subdued for the most part this week. As long as that is the case, stocks can continue to rise. As long as $VIX remains below 14, we view it as being bullish for stocks.
In summary, all of the intermediate-term indicators are bullish, and thus so is our outlook.
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