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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 -1.04% continues to plow ahead, trading at or near all-time highs. The NASDAQ-100 /zigman2/quotes/210598364/realtime NDX -1.79% /zigman2/quotes/208575548/composite QQQ -1.78% 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 -0.78% /zigman2/quotes/209961116/composite IWM -0.67% .

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
4,136.48
-43.28 -1.04%
Volume: 0.00
Feb. 3, 2023 4:54p
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/zigman2/quotes/210598364/realtime
US : Nasdaq
12,573.36
-229.78 -1.79%
Volume: 1.38M
Feb. 3, 2023 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 306.18
-5.54 -1.78%
Volume: 76.17M
Feb. 3, 2023 4:15p
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/zigman2/quotes/210598147/delayed
US : US Composite
1,985.53
-15.69 -0.78%
Volume: 2.09M
Feb. 3, 2023 4:30p
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/zigman2/quotes/209961116/composite
US : U.S.: NYSE Arca
$ 196.99
-1.33 -0.67%
Volume: 24.98M
Feb. 3, 2023 4:00p
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