S&P 500 hit a new record-high of 4,110 before easing to 4,103.8. Growth stocks in the tech industry, which were major gainers in the index, have recorded an increase in demand amid the declining US treasury yields. On Friday, the benchmark 10-year bond yield was up by 0.10% at 1.63. However, it remains significantly below its recent high of 1.77. Among other big-tech stocks, Apple, Microsoft, and Alphabet A rose by 1.92%, 1.34%, and 0.51% respectively.
Notably, with a reading of 62 on the fear & greed index, greed seems to be the emotion that is currently driving the market. This is a decline from the previous session’s 62, but higher than last week’s 58. Interestingly, the junk bond demand, safe-haven demand, and market momentum are all signaling extreme greed in the market. With reference to the market momentum, S&P 500 has exceeded its 125-day average by about 9.73%. This increase is higher than it has typically been over the past 2 years.
S&P 500 Technical Outlook
S&P 500 is trading within the middle and upper Bollinger bands. Besides, it has remained above the ascending trend line highlighted in red. For as long as the index remain on the upper side of the two indicators, its uptrend will continue.
However, after hitting its new record-high of about 4110, S&P 500 is likely to pull back before regaining its upward momentum. It is currently at 4103.8, down by 0.07%. The support levels to watch out for are 4,085 and 4,075. Below that level, the bears will be testing 4,025. On the flip side, a move further up will have the next targets at 4,125 and 4,150.
S&P 500 Chart