S&P 500 Reaches New Intraday High for a 4th Day

NASDAQ, S&P 500, Dow Jones,  As the U.S. stocks slip today, the Standard & Poor’s 500 Index hit yet another intraday record earlier today.

The NASDAQ Composite Index fell to 4,216.89 points today and the Dow Jones Industrial Average fell to 16,620.22 points earlier today as well. In comparison, the S&P 500 hit its new high of 1,913.62 points. The S&P 500 nears its second-longest run this year if it continues to advance for a fifth straight day. As of the recent, the technical resistance seems to stand at the 1,910 mark and the support kicks at 1,900. The 14-day trailing average is now close to 1,889.

Why the Strong Growth?

Investors seem to be more inclined for equities due to the recent strong U.S. economic data and the lowest U.S. 10-year yield since July of 2.44 percent, down from 2.52% late Tuesday. Inclination for equities is also in part because of the expected monetary easing by the European Central Bank.

Gold futures usually have an inverse correlation to U.S. equities, but are more evident in the recent year. Gold futures settled at its lowest point in nearly four months just on Tuesday of this week. However, there also seems to be recent uncertainty of direction for both gold futures and the S&P 500. Adam Koos, president and portfolio manager at Libertas Wealth Management Group says, “Gold can’t seem to find a clear direction and the S&P 500 is trading back and forth.”

VIX Low Volatility

The Chicago Board Options Exchange Market Volatility Index (VIX) has been relatively low along with levels of the Russell 2000. Bulls argue that a low VIX means there is nothing to worry about and the market should continue to steadily grow higher with limited volatility events. On the other hand, bears argue that this shows complacency and a revision is likely to follow. In addition, bears argue that there’s little to be enthusiastic about when the S&P 500 reaches a record high on Friday with the lowest volume of the year.

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