Market Commentary 8/26/11:
By
Lawrence G. McMillan
The S&P
500 Index ($SPX) has established 1120 as a support area, but it remains negative
in that it is trending downward.
Equity-only put-call ratios are still
rising on their charts, meaning they are still on sell signals. However, the
heights they have reached means that these indicators are extremely
oversold.
Market breadth has been very one-sided, as massive numbers of
traders are either bullish or bearish at the same time, it seems. Breadth
conditions are currently neutral.
Volatility indices ($VIX and $VXO) have
remained high, with two spike peak buy signals having occurred when $VIX backed
down from extreme highs.
In summary, conditions are improving but there
are no intermediate-term buy signals at this time. We will continue to view the
market cautiously until put-call ratio buy signals are generated.
The Weekly Updater Stock Market Commentary is an abbreviated version of the commentary featured in The Option Strategist Newsletter.
http://www.optionstrategist.com/
