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.