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-termbuy signals at this time.
We will continue to view the market cautiously until put-call ratio buy signals are generated.