S&P 500 at Record Highs, But Fear Is Rising: A Warning Sign for Bulls?

SmartReversals
06-22 06:11

$S&P 500(.SPX)$ is at all-time highs while the Fear and Greed Index shows fear. Should you use this index to time the market?

No. Is the divergence worth considering as a risk warning? Absolutely, recent ATH at fear levels preceded pullbacks, caution is key.

$VanEck Semiconductor ETF(SMH)$ : Semiconductors is the most crowded trade, and individual names as $Advanced Micro Devices(AMD)$ and $Micron Technology(MU)$ are showing signs of consolidation with significant intra-week swings.

Capital rotates, it's not surprising to see the Mag7 ( $NVIDIA(NVDA)$ $Apple(AAPL)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$ $Meta Platforms, Inc.(META)$ $Alphabet(GOOG)$ $Tesla Motors(TSLA)$ )struggling.

Risk management is vital with semis at this point.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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