Stock Market Update Monday November 27, 2023 Post Holiday Hangover Trading
In the recent trading session, the market experienced a slightly subdued tone, reflecting the aftermath of the holiday season. This period of lackluster trading activity offers insights into the current state of various financial indicators and what they might signal for the future.
Away From Stocks:
Treasury auction of two-year notes appeared relatively soft this afternoon, but it didn’t seem to alter the recent momentum in rates. Yields fell across the curve, with the long bond settling at 4.53%, down from 4.6% on Friday.
In other market news, the VIX, a measure of market volatility, saw a slight increase towards 13, indicating a modest uptick. Meanwhile, WTI crude oil experienced a pullback, dropping below $75 per barrel. Additionally, gold reached a six-month high, trading at $2,015 an ounce, which often signals increased investor interest in safe-haven assets during times of market uncertainty or volatility that could be coming.
From Bespoke:
The S&P 500 entered today less than 1% from its bull market high made on July 31st. But we've gotten to these levels in rapid fashion, which has pushed the S&P well into overbought territory. As shown, the index isn't quite as overbought as it was at the peak in July, but it's right at the top of its one-year range. Additionally, 270 stocks in the S&P entered today trading in overbought territory versus just 25 that were trading in oversold territory.
The issue with charts indicating an overbought condition is that this status can persist for an extended period. Despite the current bullish seasonality, it's important to be aware of the market's state. It is generally not advisable to purchase stocks when they are at such elevated levels.
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