The market continues to make volatile swings within a broad trading range. The current $SPX trading range is bounded by 1020 on the downside and 1120 on the upside.
Equity-only put-call ratios remain on buy signals. These put-call ratios are the most bullish of the indicators at this time.
Breadth has begun to deteriorate, even though $SPX has remained near its highs for this move. This is a negative divergence, and it has produced a sell signal.
Another divergence is the action of the $VIX, which has risen for three straight days, even though the broad market is still rising.
In summary, there are a lot of cross-currents and only the most aggressive traders should be attempt speculative one-sided positions now.
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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