The major indices once again reached new all-time highs this week, and stocks are enjoying a historic winning streak fueled by solid earnings from market-leading stocks, the perceived benefits of tax reform and ‚??FOMO‚?Ě (Fear Of Missing Out).
The S&P 500 has increased in 14 of the last 16 trading days and now sits at 2,860, after blasting through the 2,800-level last week. The Nasdaq is approaching the 7,500 level quickly, as the tech-heavy index is on a torrid run. The Russell 2000 small caps are also participating in the rally, as they made a nice push to new highs above the 1,600 level.
However, on a more worrisome note, the S&P 500 Volatility Index (VIX) has also been rising and spiked to a peak of 11.88 this past week. While this number is below the high point of around 12.70 from mid-January, the VIX held above both its 50- and 200-day moving averages yesterday. At this point, I‚??m still slightly cautious and any negative headline of significance could trigger some well-deserved profit taking.
To read more about the bullish indications of fourth-quarter earnings season, please click here.