Lack Of Volatility Remains A Bullish Signal For S&P 500 (SPY)

Share This Article
August 4, 2018 7:05am NYSE:SPY

From Larry McMillan: While the $SPX chart remains bullish, in that it is in an upward-sloping channel, there are some troubling signs beginning to appear, including a verified “modified Bollinger Band®” sell signal.


The $SPX chart itself has seen support at the 2800 level, or just below, on recent pullbacks. Below that there is major supoport at 2740.

The equity-only put-call ratios remain split in their outlook. The weighted ratio gave a buy signal a couple of weeks ago and remains on that buy signal. The standard ratio, however, is struggling to roll over to a “buy” and has not yet given a confirmed buy signal.

Market breadth has been rather lackluster. So, both breadth oscillators remain on sell signals. Again, this has not produced a large market decline, but it is another sign of trouble.

Volatility is much more positive, as far as stocks go. $VIX has remained below 15, and thus it is a bullish mode. As long as $VIX is trending lower or sideways, stocks can rally.

In summary, a good number of the indicators remain bullish, and that keeps the intermediate-term outlook bullish. However, the mBB sell signal and the persistence of lackluster breadth are indications that not all is well.


The SPDR S&P 500 ETF Trust (SPY) closed at $283.60 on Friday, up $1.21 (+0.43%). Year-to-date, SPY has gained 6.70%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 149 ETFs in the Large Cap Blend ETFs category.


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


9 "Must Own" Growth Stocks For 2019

Read Next



Get Free Updates

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

Most Popular



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