The broad market, as epitomized by $SPX, has crept higher this week. The higher highs and higher lows on the $SPX chart are easily identifiable, and as long as that pattern exists, the $SPX chart is bullish.
Equity-only put-call ratios continue to remain on buy signals. Market breadth has been generally positive as well.
Volatility indices ($VIX and $VXO) have continued to decline, and that is a bullish trend for stocks.
In summary, the conditions are bullish right now. Use the chart of $SPX as the major guide; as long as the bullish trend line remains in place, the bulls have the upper hand.
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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