McMillan Analysis Corporation
P. O. Box 1323, Morristown, NJ 07962 1323 800-724-1817
Email: info@optionstrategist.com
The $SPX chart is still intermediate-term positive at this point, as
the trend line from the March bottom remains intact. However, with
$SPX falling back below 1120, the possibility has been raised that the
recent "breakout" is a false one. If $SPX were to fall below the
November-December lows at 1085, that would be bearish.
Equity-only put-call ratios have recently moved to buy signals,
and Thursday's action did not upset that status.
Market breadth has weakened over the last week, and as a result the
breadth indicators are on the brink of issuing sell signals.
Volatility indices ($VIX and $VXO), were up this week. At this
time, their charts are still in downtrends, and so that is bullish for the
stock market. A close above 23 by $VIX would be worrisome for the bulls.
In summary, the market remains bullish, but Thursday's year-end
decline has put several indicators near reversal levels: the $SPX
trendline, market breadth, and $VIX.
McMillan Analysis Corporation
PO Box 1323
Morristown, NJ 07962-1323
www.OptionStrategist.com
