Description: Stock analysis and tips that help you find the best ETFs and stocks to buy
Low Volatility Encourages Equity Exposure
The S&P 500 Index closed at 1,949.44, up 1.34% on the week. The S&P 500 Index made new all-time highs every day last week with market internals catching up to the price action of the Index. The Nasdaq Composite and the Russell 2000 Small Cap Index did even better, rising 1.86% and 2.71% respectively.
As you can see in the graphic below, the number of stocks with bullish vs. bearish Chaikin Power Gauge ratings in the three indexes featured have improved dramatically, although the Nasdaq 100 still has more bearish than bullish ratings. The market is now up 3 weeks running with 12 of 14 trading days higher. In doing so the market has gotten overbought and is ripe for a pause. There is a stronger case to buy stocks in a climate where volatility is low and this is evidenced by the VIX Index of volatility at extraordinarily low levels. This is partially a function of Federal Reserve Board policy, but a reality nonetheless.
Power Bars from Chaikin Analytics