McMillan Analysis Corporation
P. O. Box 1323, Morristown, NJ 07962 1323 800-724-1817
Email: info@optionstrategist.com
The market is struggling, and several important indicators have rolled
over to sell signals. However, volatility indicators and $SPX itself
have not confirmed a trend change in the market from bullish to
bearish.
$SPX has probed and tested the 1085 support level several times
in recent days. If the 1085 level gives way, the next
support level is 1020-1030, the area of the October and November lows.
Equity-only put-call ratios gave sell signals a couple of weeks
ago. They arose from very low levels on their charts, which normally
means they are strong sell signals.
Market breadth has been weak, and has generated sell signals as well.
Volatility indices ($VIX and $VXO) spiked upward when the
decline began, as $VIX shot up to 28 in just three days. However, it
has fallen since then, and a crucial question arises: "Is this just another
spike peak $VIX buy signal, or is $VIX finally beginning an upward
trend, which would be bearish?"
In summary, this is still just a correction, but if $SPX closes
below 1085, it would confirm an intermediate-term negative trend.
McMillan Analysis Corporation
PO Box 1323
Morristown, NJ 07962-1323
www.OptionStrategist.com
(800)724-1817
