To The Moon

On Monday, the $Cboe Volatility Index(VIX)$ was at its highest level since 20 Dec 2024. The VIX has went up more than 20% above its 12-day moving average, this is a sign of increased market fear which signals that market is expecting lows.

With Fed Powell mentioning that they are keeping the rate unchanged so what would this do to the NASDAQ and S&P 500?

Can We Continue To See The Market Hold Up?

On Wednesday (29 Jan), we saw the market in a mixed performance with some trading moving either way, but the major indices has cleared some important levels.

Both the $NASDAQ 100(NDX)$ and $.SPX(.SPX)$ hold their 50-day MA well, which we saw both of them breaking below it on Monday (27 Jan).

The volume fell on the Nasdaq as well as the New York Stock Exchange. Declining stocks led advancers by 12-to-7 on the NYSE and by 7-to-5 on the Nasdaq, according to FactSet. But both indices managed to avoid this.

S&P 500 managed to keep itself above the 50-day moving average for the past two days (Tuesday and Wednesday), this could mean that we might want to watch how S&P 500 would trade on Thursday(30 Jan) after Fed informed that they are keeping the rates unchanged.

NASDAQ has managed to keep itself above 50-day moving average, with some support from strong tech stock earnings like $Meta Platforms, Inc.(META)$ I would think this could continue as there would be more tech earnings next week as well.

Summary

If we were to look at how the S&P 500 and NASDAQ have been performing throughout this recent selloffs, it it important to identify the key level whether we are going to see a large correction.

From what I have observed, it looks like market might be able to continue producing a stronger performance with some big tech names like $Tesla Motors(TSLA)$ helping to push the S&P 500 up as well.

Appreciate if you could share your thoughts in the comment section whether you think market can continue to hold up despite VIX hitting highest level on Monday (27 Jan).

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.