McMillan Analysis Corporation
P. O. Box 1323, Morristown, NJ 07962 1323 800-724-1817
Email: info@optionstrategist.com
Thursday, September 8th, 2011
The chart of $SPX has developed a very interesting
characteristic: there is a rising channel -- called a "pennant" on the
chart. A breakdown below the lower boundary of the
channel creates a very negative technical formation.
Equity-only put-call ratios, meanwhile, are quite bullish. They
rolled over to buy signals last week and continue to decline.
Volatility indices ($VIX and $VXO) have been stubbornly
staying at high levels. There was a spike peak buy signal again this week.
In summary, the buy signals from put-call ratios and $VIX offer
a positive short-term picture, but there are other negative factors
present as well -- the most dangerous of which would be breakdown
below 1140, violating the lower end of the channel.
McMillan Analysis Corp.
Info@OptionStrategist.com
(973)328-6219
www.OptionStrategist.com
