McMillan Analysis Corporation
P. O. Box 1323, Morristown, NJ 07962 1323 800-724-1817
Email: info@optionstrategist.com
Thursday, January 14th, 2010
The $SPX chart remains positive in that
it is above the trendline from the March bottom. Near-term support
exists at 1130 (see chart, Figure 1) and then at 1115 -- the low of the
last-day selloff of 2009.
The equity-only put-call ratios have hopefully shrugged off the
effects of the heavy hedging activity of last summer and resumed
being useful indicators. They remain on buy signals.
Market breadth has been strong since the beginning of the year,
pushing into overbought territory. That is positive news.
Volatility indices ($VIX and $VXO) have continued to decline,
and that is bullish. The downtrend since mid-December is most
noticeable on the $VIX chart (Figure 4) and as long as that remains
intact, the implications are bullish.
In summary, the conditions for a further rise in prices remain
intact. None of the indicators are on sell signals, although overbought
conditions warn of potential short-term corrections.þ
McMillan Analysis Corporation
PO Box 1323
Morristown, NJ 07962-1323
www.OptionStrategist.com
(800)724-1817
