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Stock prices moved mostly sideways on Friday, with the S&P 500 closing 0.13% lower, slightly pulling back from Thursday’s new record high of 5,767.37. Futures contracts indicate the index is likely to open 0.3% lower this morning. Investor sentiment remains elevated, as shown by last Wednesday’s AAII Investor Sentiment Survey, which reported that 49.6% of individual investors are bullish, while only 23.7% of them are bearish, down from 26.4% last week. The S&P 500 continues to trade above the 5,700 level, as we can see on the daily chart. S&P 500: Another weekly gain Compared to the previous Friday’s close, the S&P 500 gained 0.62%, extending the prior week’s advance of 1.4%. The market has continued to rally and hit new records after breaking out the previous week. Key support remains around the previous highs at the 5,650 level. Nasdaq 100: Consolidating around 20,000 The Nasdaq 100 index pulled back by 0.53% on Friday, reaching the 20,000 level again. Although it broke above this level last Thursday, it failed to move significantly higher. Resistance remains around 20,250. This morning, the index is likely to open 0.4% lower, as indicated by futures. VIX Rebounded from 15 On September 6, the VIX index, a measure of market fear, reached a local high of 23.76. It was indicating elevated fear among investors. However, a stock rebound followed by a record-breaking rally pushed the VIX lower. On Thursday, it fell to 14.90, its lowest level since late August. However, on Friday, the VIX rebounded to around 17 as stocks pulled back. Historically, a dropping VIX indicates less fear in the market, and rising VIX accompanies stock market downturns. However, the lower the VIX, the higher the probability of the market’s downward reversal. Conversely, the higher the VIX, the higher the probability of the market’s…

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Filed under: News - @ September 30, 2024 3:25 pm