$SPX broke out over resistance at 1105 this week, accompanied by several other intermediate-term buy signals. As a result, we are bullish.
The put-call ratios are all on buy signals now.
Market breadth has been positive, and thus the breadth indicators are on buy signals.
Volatilty indices ($VIX and $VXO) dropped rather sharply this week. $VIX closed below 27 on Tuesday and is now near 25. In my opinion, this breaks the uptrend of $VIX, and that turns the $VIX chart bullish (for stocks).
In summary, what had been oversold conditions led to a rally over the past week, and that finally resulted in an upside breakout with accompanying buy signals from all of our intermediate-term indicators.
Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, recognized as essential resources for any serious option trader's library.
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