$SPX - Extreme Fear in Market Momentum

SmartReversals
2024-11-11

$.SPX(.SPX)$ - Fear in the overall Fear & Greed Index - Extreme Fear in Market Momentum

Market momentum is a component of the Fear and Greed index, it tracks the price distance from the 125 moving average, the most significant peaks have ranged from 6.4% to 11.4% gap between the S&P and this line.

Current status: 8.3% gap with technical exhaustion.

Why the Fear and Greed is not at extreme level? because the McClellan summation index is falling, setting a divergence.

Can the index move up for another 2% gap? Maybe, but the $Cboe Volatility Index(VIX)$ looks bouncy, and if it happens without a healthy pullback, the seatbelts should be fastened.

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S&P Target 6500? Is It Safe to Invest at High Levels?
With $.SPX(.SPX)$ recently surpassing the 6,000 point, major institutions have expressed optimism about the U.S. stock market's outlook for next year: Morgan Stanley: Set a base-case year-end 2025 target for the S&P 500 at 6,350 points, with a bullish scenario target of 7,400 points. ---------- Will you still invest in US stocks despite of high valuations and low risk premium? Can $.SPX(.SPX)$ hit 6500 as analysts suggest?
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