Weekly Market Commentary 8.29.14

$SPX broke out to new all-time intraday and closing highs this
week.  New all-time closing highs were made on 4 of 5 consecutive
days, which confirmed the move, so the $SPX chart is bullish once again.   lm 8 29 spx

Equity-only put-call ratios have finally rolled over to buy signals. To the naked eye, they rolled over more than a week ago, but to the computer, the confirmed buy signals only arrived a couple of days ago.

Market breadth has remained positive, and the breadth indicators thus continue to remain on buy signals.

Volatility indices ($VXST, $VIX, and $VXV) have remained subdued for the most part this week.  As long as that is the case, stocks can continue to rise.  As long as $VIX remains below 14, we view it as being bullish for stocks.

lm 8 29 vix
In summary, all of the intermediate-term indicators are bullish,
and thus so is our outlook.

No Comments
Larry McMillan

optionstrategist.com

Professional trader Lawrence G. McMillan is perhaps best known as the author of Options As a Strategic Investment, the best-selling work on stock and index options strategies, which has sold over 300,000 copies. An active trader of his own account, he also manages option-oriented accounts for certain individuals. In a research…

Tags

, ,