Options specialist Larry McMillan targets a move to new highs in the S&P 500 and has issued a buy on IBM (NYSE: IBM). In his trading service, The Daily Strategist, he notes, "Despite a pullback in recent days, we expect the major trend upmove to resume. The financial sector has continued to rally, which is positive."
And, he adds, as long as the setback in the energy sector doesn't develop into a major technical breakdown, the pullback to date is "nothing to be overly concerned about, particularly given the longer-term positive trend."
Technically, he notes that market breadth has turned positive – erasing last week's Sell signals. He notes, "For continued confirmation of the bull case, we would expect to see breadth numbers continue to register increased overbought readings."
Meanwhile, he adds, the equity-only put-call ratios continue to trend lower – which is bullish. Overall, he concludes, "We are going to maintain our view of a move towards new all-time highs for S&P 500 above 1,555. And, we expect an upmove to resume soon."
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