The stock market continues its record-breaking streak, with the S&P 500 reaching new heights and the Nasdaq 100 breaking records above 21,000. Despite some potential fluctuations and consolidation, investor sentiment remains positive. The VIX, a measure of market volatility, has dipped near 15, indicating a lack of fear in the market.
Nasdaq 100: New Records Above 21,000
The Nasdaq 100 surged 1.54% yesterday, hitting a record high of 21,132.80. While it may open slightly lower today, the support level is between 20,800 and 20,900, suggesting a strong foundation for future growth.
VIX Dipped Near 15
The VIX dropped over 20% on Wednesday, signaling a risk-on sentiment in the market. Historically, a declining VIX indicates less fear and potential market upturns. However, it’s essential to monitor the VIX levels for any signs of market reversal.
Futures Contract Flirting With 6,000
The S&P 500 futures contract is approaching the 6,000 level, with support at 5,900-5,920. While the market may seem overbought in the short term, no negative signals are present, indicating room for further growth.
Conclusion
The stock market’s rally post-election results raises questions about the market’s future direction. While short-term overbought conditions may lead to a pullback, the overall bullish outlook remains strong. Considering the end-of-year seasonality and current market conditions, the short-term outlook remains neutral.
Breakdown:
- The S&P 500 continues to break records.
- The market’s reaction to the Fed rate decision suggests potential consolidation.
- The short-term outlook remains neutral.
In conclusion, the market’s current momentum and positive sentiment indicate potential for further growth, making it an exciting time for investors to capitalize on these opportunities. Keep a close eye on market indicators and stay informed to make informed investment decisions.