McMillan Market Commentary
Thursday, April 21st, 2010
After a severe scare on Monday, which I label the "Emperor has no
clothes" decline, the market has responded well, due in large part to
some positive earnings report.
Now the problem -- if there is one -- is the resistance from the
February and April tops in the 1340-1345 area. Another failure at
this level would be quite bearish.
Equity-only put-call ratios have remained bullish, even with the
selling that occurred last week.
Breadth has improved with this week's rally, and the breadth
indicators are back on buy signals once again.
What has been perhaps the most bullish indicator is the
volatility index ($VIX). As long as $VIX is trending lower, that is bullish.
Although, with $VIX at these low levels, we would have to classify it
as "overbought."
In summary, the indicators are bullish, and so we expect $SPX to
make new highs soon. The would mean a clear breakout above 1344.
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McMillan Market Comment
Started by
TTHQ Staff
, Apr 22 2011 08:42 AM
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