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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 +0.08% continues to plow ahead, trading at or near all-time highs. The NASDAQ-100 /zigman2/quotes/210598364/realtime NDX +0.75% /zigman2/quotes/208575548/composite QQQ +0.62% 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 +0.14% /zigman2/quotes/209961116/composite IWM +0.14% .

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
4,662.85
+3.82 +0.08%
Volume: 2.52B
Jan. 14, 2022 5:16p
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
15,611.59
+115.98 +0.75%
Volume: 759,246
Jan. 14, 2022 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 380.01
+2.35 +0.62%
Volume: 80.12M
Jan. 14, 2022 4:00p
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/zigman2/quotes/210598147/delayed
US : US Composite
2,162.46
+3.02 +0.14%
Volume: 1.45M
Jan. 14, 2022 6:22p
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/zigman2/quotes/209961116/composite
US : U.S.: NYSE Arca
$ 214.31
+0.30 +0.14%
Volume: 42.02M
Jan. 14, 2022 4:00p
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