S&P 500 Breaks Through Support For First Time In Months (SPY)

Share This Article
August 11, 2017 2:36pm NYSE:SPY

investing-paper-market

From Larry McMillan: The market averages have broken down and broken support (except for the Dow). This is the first time that can be said since this past March.


We are looking at a strong possibility of a retest for the S&P 500 (SPX) of the 2400 level. If that should fail, it is possible that a much more serious bearish market could develop. But as long as the 2400 support level holds, the $SPX chart will remain bullish.

s1

The equity-only put-call ratios are both on sell signals. The WEIGHTED ratio (Figure 3) is a “cleaner” chart, and it just gave a sell signal at the close of trading on August 10th.
Market breadth may have finally begun to resume its place as a valued indicator. The breadth oscillators rolled over to sell signals at the beginning of August and have correctly anticipated this correction. They remain on sell signals, but are oversold at this time.

s2

s3

Volatility has been the subject of concern for many traders and analysts for some time now. It exploded yesterday. $VIX has NOT been above 16 for months, and as long as that is the case, the damage in stocks will likely be contained.

s4

In summary, the long-awaited correction has begun. Oversold conditions are already appearing, and even one day of rally might generate buy signals. We will follow the signals wherever they lead us, without getting hung up on downside targets or duration of the correction.

The SPDR S&P 500 ETF Trust (NYSE:SPY) was trading at $244.44 per share on Friday afternoon, up $0.68 (+0.28%). Year-to-date, SPY has gained 10.37%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 118 ETFs in the Large Cap Blend ETFs category.


This article is brought to you courtesy of McMillan Analysis Corp..


Read Next


Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories