Thursday, April 22nd, 2010
Perhaps even the SEC was getting bored with the low volatility, so they decided to sue Goldman Sachs (GS) to inject some volatility into the market. There is short-term resistance on the $SPX chart at 1210, near today's close. A strong breakout over 1210 would likely mean another leg up. There is support at last Monday's lows, near 1185. Equity-only put-call ratios generated sell signals after the government-induced selling, but those sell signals are now in jeopardy with the market's strong recovery since then. Market breadth was poor during the 2-day selling spree, and that alleviated the overbought conditions to a certain extent. Volatility indices ($VIX and $VXO) spiked up during the government-induced selloff, and then spiked right back down again. That created a spike peak buy signal on the $VIX chart, and re- established the downtrend in $VIX as well. In summary, the intermediate-term picture remains bullish,
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