Weekly Commentary

The stock market continues to be resilient, if dull. The bears have not
been able to force prices downward, despite what was a very
overbought condition a week ago.


Equity-only put-call ratios remain bullish. Both the standard and
weighted ratio have now made new lows for this recent move, and that
confirms their buy signals.

Market breadth incicators had reached very overbought levels
last Friday, but both oscillators have declined substantially during the
mostly sideways action this week. As a result, both remain on buy
signals, and neither is particularly overbought at this point.

Volatility indices ($VIX and $VXO) continue to drift lower. The
fact that they are in downtrends is bullish for stocks.

In summary, we remain bullish, even though we realize that
overbought conditions could generate a short-lived decline at any time.

Larry McMillan