By Lawrence G. McMillan
$SPX closed above 2100 this week for the first time since last December. The Index chart remains bullish, with support at 2070 and 2040. There is multitudinous resistance between 2100 and the all-time highs at 2135, but this market hasn't had problems with resistance so far.
Equity-only put-call ratios remain on buy signals, even though they are mostly just moving sideways recently.
Both of our breadth oscillators are on buy signals, since breadth has been very strong following the recent $SPX breakout over 2070. It is beneficial to the bullish trend if these breadth oscillators quickly become overbought, and they have done so.
Volatility indices and derivatives are in a bullish mode as well. Yes, $VIX is in the lower regions of its chart, but as long as it bounces around at these low levels, in the 13 to 16 range, stocks can continue to rise.
In summary, there is not a confirmed sell signal among our indicators at this time. Even if there were, we wouldn't act on it unless $SPX broke support.
This Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
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