Editors Note: This was sent by larry on friday, a trading holiday.
The stock market abruptly ended its decline of a week ago and rallied all week. Wednesday’s strongly higher opening turned into an overall bullish day, and as a result a number of indicators rolled over to buy signals or generated new buy signals as well.
$SPX is now right back in the middle of the old 1840-1880
trading range. In effect, we have now had a false upside breakout in early April and now have had a false downside breakout. This is extremely distressing to both the bulls and the bears.
Equity-only put-call ratios remain on sell signals, and they will continue to do so for a while.
Market breadth has been influential. The breadth indicators
are now both back on buy signals once again.
So, $SPX has turned from bearish to neutral, while market
breadth and volatility have turned from bearish to bullish. Only the equity-only put-call ratios remain bearish. Overall, the evidence is slightly to the bullish side.