Weekly Stock Market Commentary 7/5/2019

The S&P 500 Index ($SPX) has made new all-time closing highs on the last three days. Other indices are following most notably the Dow ($DJX) and NASDAQ (QQQ and Composite).

There is support on the $SPX chart at the old highs (2940- 2950) and below that, where there was more work done, at 2890- 2910.

The equity-only put-call ratios remain strong and on buy signals, as those ratios continue to drop rapidly.

Both breadth oscillatorsaare on buy signals and both are in overbought territory. That’s a good thing when $SPX is making new all-time highs.

$VIX has dropped quite a bit in the last week and is now approaching 12. In any case, $VIX is in a bullish spot, and would only turn negative for stocks if it were to climb above 17.

In summary, we remain bullish along with our indicators.

Weekly Charts

S&P 500 (SPX), CBOE Market Volatility Index (VIX), 21-Day Equity Only Put Call Ratio (PC21), and Weighted 21-Day Equity Only Put Call Ratio (PC21 w) charts updated each Friday.

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