McMillan Analysis Corporation
P. O. Box 1323, Morristown, NJ 07962 1323
800-724-1817
Email: info@optionstrategist.com
Thursday, June 17th, 2010
$SPX broke out over resistance at 1105 this week, accompanied by several other intermediate-term buy signals. As a result, we are bullish.
The put-call ratios are all on buy signals now.
Market breadth has been positive, and thus the breadth indicators are on buy signals.
Volatiltiy indices ($VIX and $VXO) dropped rather sharply this week. $VIX closed below 27 on Tuesday and is now near 25. In my opinion, this breaks the uptrend of $VIX, and that turns the $VIX chart bullish (for stocks).
In summary, what had been oversold conditions led to a rally over the past week, and that finally resulted in an upside breakout with accompanying buy signals from all of our intermediate-term indicators.
