Weekly Commentary

When the dust has settled, this looks like little more than a pullback from

a slightly overbought condition to test the breakout level (at 1220).

To sum up the SPX (1261.15) chart: there is still support at 1220, and as
long as that holds, it’s a bullish chart.

Equity-only put-call ratios have remained on buy signals all week, despite the heavy

selling earlier in the week. Also, the breadth oscillators are back on buy signals once again.

Meanwhile VIX (30.50, down 2.24 Thursday) has now fallen back quite a bit, triggering a
short-term VIX spike peak buy signal.

In summary, we remain constructive on the market. As long as SPX 1220 holds as support,

this market should be able to work its way higher.

Larry McMillan

http://www.optionstrategist.com

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Larry McMillan

optionstrategist.com

Professional trader Lawrence G. McMillan is perhaps best known as the author of Options As a Strategic Investment, the best-selling work on stock and index options strategies, which has sold over 300,000 copies. An active trader of his own account, he also manages option-oriented accounts for certain individuals. In a research…