McMillan Weekly Market Outlook 5.3.13

Individual indicators are bullish in their own right, but price
(i.e., the chart of $SPX), is without a doubt the number one factor for
consideration.  There is support in the 1575-1580 range —
generally in the area of the lows of the past couple of weeks.


Equity-only put-call ratios are both on buy signals.
Market breadth has advanced a lot with many very strong days
since mid-April.  The net effect is that the breadth indicators have
remained on buy signals for about two weeks and are in overbought
Volatility indices ($VIX and $VXO) are bullish as well.  With
$VIX below 14, stocks should have little trouble advancing.

In summary, despite considerable gains already this year, $SPX
remains bullish.   The technical indicators are bullish, too.  If $SPX
were to fall below 1575, then the situation would change to neutral,
and a close below 1540 would be outright bearish.