The stock market continues to plod higher in a steady fashion. While there are some overbought conditions and other signs of negative sentiment, they remain ineffective in the face of the more powerful bullish trend.
Equity-only put-call ratios turned bearish about a week and a half ago.
Breadth has become more positive again, and recent breadth sell signals have been canceled.
So $VIX will remain supportive of the bullish stock market unless it closes above 18.50.
As has been the case for some time now, the trend of $SPX is really the only indicator one needs. As long as it continues to remain above rising trendlines and support, other sell signals will have little or no effect. Only a breakdown below the 1262 level on $SPX would be problematic for the bullish trend.
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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