Free Weekly Stock Market Commentary 10/23/26
By Lawrence G. McMillan
As time drags on, $SPX continues to trade within the trading range that has lasted since late July. This is marked in figure 1 by the box on the upper right. The current box has support at 7580-7620, which has been tested several times and is being tested again today. There is some resistance at 7750-7760 (the highs of several recent trading days), with more substantial resistance at the all-time highs, 7820-7840.
Let's look at the individual indicators. They are still mixed reflecting the trading range environment. Equity-only put-call ratios are both on sell signals.
Countering the negativity of the put-call ratios is an improvement in breadth. Breadth was nicely positive on Tuesday and Wednesday of this week. That was enough to generate a buy signal from the "stocks only" breadth oscillator. It thus joins the buy signal from the NYSE-based breadth oscillator, which has been in place since October 12th.
The indicators based on $VIX itself are still bullish, but perhaps not as strongly as they were in recent weeks. First, the "spike peak" buy signal of October 19th remains in place. Second, the $VIX futures and Cboe Volatility Indices continue to have a positive slope to their term structures.
So, the market continues to have wide disparity between $SPX and the broader classification of stocks. $SPX is still locked in the trading range, and we would not get too excited about individual signals within the range. However, a breakout should definitely be traded.
$VIX$Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
