Can The Stock Market Bulls Pass This Test?
The $CBOE Volatility S&P 500 Index(.VIX.US$, also known as Wall Street's fear gauge, ended 8.87% higher on Monday. The index fell to as low as 18.95 last week below the key 20 thresholds and reached the lowest level in more than three months. The rebound of the Vix Index signals market doubts about the market's future prospects.
The VIX Index measures market expectations of 30-day volatility and can serve as an important indicator of how investors are feeling. The index jumped on better-than-expected November ISM Services data on Monday as stock futures tumble. Investors worry that the Federal Reserve will need to hike interest rates for longer.
A relief rally last week drove the $S&P 500 Index(.SPX.US$ above its 200-day moving average for the first time since April, after Federal Reserve Chair Jerome Powell signaled a slowdown in the tightening pace. In the previous 13 occasionsin which the index stayed below this 200-day moving average for at least six months and then closed higher, the average rise of the S&P 500 in the following year was +18.8%.
Many investors believe this could hardly be "a start of a bull run." The S&P 500 index failed to hold above the downward-sloping 200-day moving average, after hitting the resistance level. In addition, bear market rallies in 2022 ended when VIX Index was this oversold, says HOZ on Twitter.
Mooers, Do you want to be on the bear side or the bull side?
Source: Bloomberg
Disclaimer: Past performance can't guarantee future results. Investing involves risk and the potential to lose principal. This article is for information and illustrative purposes only.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo Official Account
Welcome to moomoo chat room.
6743Followers
3Following
9958Visitors
Follow
70784737 : LMAOOOOOOO
The Random Investor : You're running out of time to recover your losses
Your Investment Portfolio Is Down Big This Year? This Is How You Recover Some of Your Losses
courageous Raccoon_1 : Bull
70936212 The Random Investor: how can I get my put my earnings into my account