$SPX is in a tight range between 1180 and 1200, and a breakout in either direction would likely create a sustained move.
The weighted equity-only put-call ratio is still on a sell signal. The standard ratio is on a buy signal.
Market breadth indicators have been bouncing back and forth, due to massive swings in the advance-decline figures almost daily. They are currently in positive territory.
Volatility indices ($VIX and $VXO) have displayed a more positive picture than $SPX has. At this time, $VIX is in a range between 18 and 23, awaiting a breakout.
In summary, a battle is being waged between the bulls and bears at current $SPX levels. The fact that the market couldn't break through to new highs in early November seems bearish to me, but we are waiting to see which way $SPX breaks out before taking speculative, directional positions.
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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