SP500 tests new highs as traders stay bullish. Today, traders focused on the housing market data. Building Permits declined by 2.5% month-over-month in November, while Housing Starts increased by 14.8%. Treasury yields moved lower as bond traders remained focused on dovish Fed. The expectations of rate cuts in the first half of 2024 serve as the key bullish catalyst for SP500. The current market sentiment is extremely bullish, and it looks that the rally is driven by the fear of missing out (FOMO). The rally is extremely broad, and all market segments are moving higher in today’s trading session.
RSI moved further into the overbought territory, but it stays below the recent highs. From a big picture point of view, SP500 is heading towards all-time high levels.
NASDAQ is also moving higher amid a broad rally in the equity markets. Demand for tech stocks remain strong as traders bet that…
