Following a robust surge to new all-time highs ) last week, $SPX encountered a setback on Wed 1/31. This was driven by disappointing earnings from notable companies like AMD, GOOG, and MSFT, alongside the conclusion of the FOMC meeting, culminating in a sharp 80-point selloff on Wednesday. Thursday saw a partial recovery, yet the market remains ensnared by news-related fluctuations. Friday brought positive earnings reports from AMZN and META (surged 20% after earnings), with an Unemployment Report signaling strength, dampening hopes of a rate cut. Despite these oscillations, the $SPX chart (all time high – 4958) maintains a bullish trajectory , finding support around 4800, extending to 4680 and some resistance if SPX crosses 5000 soon. As long as this range holds, the $SPX chart remains positive.

Technical analysis of equity-only put-call ratios suggests lingering sell signals, albeit with a neutral interpretation until a clear upward trend emerges.

Market breadth, previously robust since January 18th, briefly shifted to sell signals this week due to negative market action. Additional days of negative breadth could solidify sell signals.

Meanwhile, $VIX, despite minimal reaction to $SPX’s 80-point decline, maintains a low level, affirming the existing trend of $VIX buy signals. A low $VIX alone isn’t concerning; it’s the sharp upward spikes that pose issues.

Overall, a “core” bullish stance persists as long as the $SPX chart remains positive above 4800