By Lawrence G. McMillan
Monday was a very boring market day (again), which did nothing to chance the technical situation at all. Breadth was actually fairly positive, so the breadth oscillators remain on buy signals, and the oscillators are modestly overbought. The equity-only put-call ratios remain strongly on buy signals as well. $VIX did rise a little, but not enough to change the fact that it is still in a downtrend, and that – coupled with the fact that the $VIX futures term structure is still positively sloped – is bullish.
Tonight the S&P futures are up 7 points in Globex trading. If these levels hold until the U.S. markets open, then $SPX will be very near the 1290 level of the October highs. A close above there would be quite bullish, and it seems that the market is capable of accomplishing that feat now...
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