Weekly Market Commentary

$SPX has bounced back and forth in the 1495 to 1515 range for nearly two weeks. A breakout in either direction would likely be enough to spur further momentum in the direction of the breakout.

Equity-only put-call ratios continue to meander sideways. As such, they are not particularly useful indicators right now. Market breadth has been positive enough to keep the breadth oscillators on buy signals. They are also slightly overbought. Volatility indices ($VIX and $VXO) have also been bouncing back and forth, along with $SPX. $VIX has roughly traded between 13 and 15. A close above 15 would be bearish for stocks.

In summary, the bears have had plenty of chances to knock this market down, but so far have failed to do so. The fact that none of the indicators has rolled over to sell signals shows that the bulls remain in charge.

Larry McMillan