The broad stock market has moved back and forth in a fairly narrow range, but has traversed the range rapidly. The most recent range has resistance at 1100 and support at 1055 or so. A breakout of this range should produce a quick move to the boundaries of the wider range: 1020 to 1120.

From an intermediate-term perspective, the chart of $SPX is still in a downtrend, as evidenced by the lower highs and lower lows.





Equity-only put-call ratios are on buy signals.




Market breadth has not been useful lately, as it flips from overbought to oversold on a whim.




Volatility indices ($VIX and $VXO), on the other hand, have been quite useful indicators in this volatile environment. At this time, not surprisingly, $VIX is in something of a trading range, too, being bounded by 23 and 27. A close below 23 would be bullish for stocks, and a close above 27 would be bearish.




In summary, the market remains on hold, awaiting a breakout.

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.