The SP-500 market index, comprised of America’s 500 largest publicly traded companies, has seen a recent surge in activity, illustrating a broader turnaround in the US equity markets. This bullish market sentiment has bolstered investors’ confidence and given us some insight into the current state of the economy. In this article, we take a look at three charts you need to watch to get a better understanding of the SP-500’s performance.
The first chart we’re highlighting is the S&P 500 relative strength index (RSI), which has been on an upward trend since the start of June. This suggests that the market is in a strong uptrend and is likely to stay that way for the foreseeable future. Furthermore, this chart points to potential support of the market, with the RSI remaining above its 50-day moving average.
The second chart is the SP-500 Volatility Index (VIX), which has been in a downward trend over the past few months. This indicates that the markets have become less volatile, leading to less overall potential risk. This is important, as it may encourage long-term investors to remain invested in the markets, further driving up the index.
Finally, the third chart we’re highlighting looks at the SP-500 Price to Earning (P/E) ratio, which has been declining since early June. This suggests that the stocks in the S&P 500 are getting cheaper, making them even more attractive to investors.
In conclusion, the three charts we have examined point to a positive outlook for the SP-500 markets. The RSI and VIX remain in on an upward trend while the P/E ratio has been declining. This is encouraging for investors and indicates that the markets may remain in good shape for the near future. As always, investors should do their own due diligence before making any decisions.