Weekly Market Outlook 11.14.14

It has been a great stock market rally, with $SPX advancing 200 points
in about a month.  But the advance is slowing, and sell signals are
setting up (although none has actually been confirmed yet).

$SPX has minor support at 2030 and also below there, at 2000.

lm 11 13 spx
Equity-only put-call ratios have remained solidly on buy signals
for nearly a month.  They are dropping rapidly on their charts, and it’s
bullish for stocks as long as they continue to decline.

Market breadth has not been particularly strong, but it’s been
strong enough to keep the breadth oscillators on buy signals.
However, they are weakening, and one more day of negative breadth
will generate sell signals.

Volatility indices have generally remained subdued. $VIX traded
below 13 this past week.  While that’s an overbought condition of
sorts, it’s not dangerous for stocks unless $VIX begins to trend higher.
LM 11 13 vix

In summary, the intermediate-term indicators are bullish for now,
but overbought conditions look like they’re going to produce some
sell signals soon.  LM