Weekly Market Commentary 1.23.15

The market continues to be volatile, with $SPX bouncing from support at 1990 to resistance at 2065 swiftly in the past four days.  Outside of that range, there is further support at 1975 (the October lows) and resistance at 2090 (the all-time highs).  As a result, the $SPX chart remains neutral at this time.
LM 1 23spx

Equity-only put-call ratios turned bullish in early January, and the standard ratio remains on a buy signal (barely) at this time, even though the 21-day moving average has curled upward over the past few days.  On the other hand, the weighted put-call ratio is rolling over to a sell signal.

Market breadth has been erratic, but both of the breadth indicators
that we follow are on buy signals now.

Volatility indices have generally been declining, which is bullish.
There was a rising trend in $VIX , but Thursday’s action broke
that downtrend line.
LM 1 23 15 vix

In summary, the market is volatile within a trading range.  This is
a neutral outlook, until $SPX can break out in one direction or the other.