Despite some negative connotations during the week, the market has managed to edge its way higher. There is support on $SPX in the 1220-1225 area.





The upward moves this week were labored, though. Breadth was relatively poor all week, until today. Furthermore, the market had several negative intraday reversal days in the last two weeks. At this time, the breadth indicators are mixed.




Equity-only put-call ratios have been moving lower and thus they are bullish




Volatility indices have been perhaps the most bullish confirming indicator. $VIX dropped below 17 for the first time since late April.




In summary, the trend is bullish but labored. At this time, then, we will respect the market's uptrend, but if the 1220 support area is violated, one should take a bearish stance.

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.