Lawrence G. McMillan

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Nov. 20, 2021, 4:12 p.m. EST

Stock-market bears have a narrow window to capitalize on any S&P 500 sell signals

By Lawrence G. McMillan

The S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.66% continues to plow ahead, trading at or near all-time highs. The NASDAQ-100 /zigman2/quotes/210598364/realtime NDX +2.55% /zigman2/quotes/208575548/composite QQQ +2.39% is keeping pace with it pretty well. Other major indexes have started to lag behind, though – especially the Russell 2000 /zigman2/quotes/210598147/delayed RUT +1.71% /zigman2/quotes/209961116/composite IWM +1.54% .

But what’s more concerning is that we are now seeing confirmed sell signals from breadth and from equity-only put-call ratios. More about that in a minute.

SPX has support at last week’s lows, at 4630. Below there, support also exists at the previous highs, 4525-4550. A close below 4630 would not only be a violation of support, but it would also confirm a McMillan Volatility Band (MVB) sell signal.

/zigman2/quotes/210599714/realtime
US : S&P US
4,428.77
+72.32 +1.66%
Volume: 1.15B
Jan. 26, 2022 12:29p
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
14,510.00
+360.87 +2.55%
Volume: 409,901
Jan. 26, 2022 12:29p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 353.35
+8.24 +2.39%
Volume: 38.84M
Jan. 26, 2022 12:29p
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/zigman2/quotes/210598147/delayed
US : US Composite
2,038.40
+34.37 +1.71%
Volume: 606,076
Jan. 26, 2022 12:14p
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/zigman2/quotes/209961116/composite
US : U.S.: NYSE Arca
$ 201.90
+3.06 +1.54%
Volume: 21.77M
Jan. 26, 2022 12:29p
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