Pushing New Highs

The Standard & Poors 500 Index ($SPX) is nearing its all-time highs. But the progress has been rather slow, especially in light of the fact that all of our other indicators are on buy signals.
There is heavy resistance all the way up to the all-time highs at 2135. The first support level is 2090, and then 2040 below that.

Equity-only put-call ratios remain on buy signals. In addition, the Total put-call ratio is on a buy signal as well.

Market breadth has been strong ever since $SPX broke out of the triangle. As a result, both breadth oscillators are on buy signals.

Volatility indices have remained low, and $VIX has remained within its 13-17 trading range. As long as it stays in that range, stocks can continue to rise.

In summary, all of the subsidiary indicators are bullish. $SPX would have to break out to new all-time highs in order to confirm that bullishness. We expect that to happen. What happens after that could be interesting, but for now we are looking for the bulls to be able to push through to new highs.

Lawrence G. McMillan, The Option Strategist, www.optionstrategist.com, 973-328-1303, June 10, 2016

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