S&P 500 Index Hits a New Record
As shown on the S&P 500 chart (US SPX 500 mini on FXOpen), the stock index has reached a new record, surpassing the high set on 11 November.
Bullish sentiment on Wall Street was driven by the announcement that Trump has selected Scott Bessent, a renowned investor and hedge fund manager, as Treasury Secretary.
A technical analysis of the S&P 500 chart (US SPX 500 mini on FXOpen) reveals that the price is moving within two ascending channels:
The medium-term blue channel that began in August.
The short-term steeper channel (marked with black lines), which has pushed the price from the lower half of the blue channel to its upper half.
The decline from B to C retraced approximately 50% of the rise from A to B.
However, how robust is this bullish sentiment? Two bearish factors warrant attention:
Rising Cboe Skew Index: Reuters reports an increase in the Cboe Skew (.SKEWX), a financial tool reflecting investor caution. Concerns may stem from potential inflation spikes, Trumps tariffs, and other risks.
Possible False Breakout: The chart indicates that after setting a new high, the price turned downward (marked with a red arrow), potentially signalling a false bullish breakout of the previous high.
The strength of demand will become clearer following the market's reaction to the release of the Personal Consumption Expenditures (PCE) index, scheduled for today at 18:00 GMT+3.
Read more: https://fxopen.com/blog/en/oa-s-p-500-index-hits-a-new-record/
Text source: Forex Trading Blog
