Weekly Market Commentary

$SPX is back down into its previous trading range.

The broadest measures of the $SPX trading range now show
support at 1270 (the early June lows) and resistance at 1360 (the mid-
June highs). There is also support at 1305-1310, where $SPX has
registered daily lows several times this month. The 1335-1340 area is
now resistance once again.


Equity-only put-call ratios remain on buy signals.

At the current time, breadth indicators are on buy signals as well.

Volatility indices ($VIX and $VXO) have remained somewhat
subdued, even though $SPX has fallen back from its highs. $VIX has
not closed above 21 — the demarcation line (in our opinion) between
bearish and neutral/bullish. Below 21 is bullish.


In summary, the technical indicators are bullish, but price action
of the $SPX index leaves something to be desired. But if SPX can close
above 1340, the bulls will get another shot a creating a lasting rally.

Larry McMillan