Investors are actively purchasing shares ahead of the Federal Reserve's upcoming interest-rate decision, driven by expectations of favorable outcomes that could bolster stock prices. The proprietary DVAN trend line, which measures buying or selling pressure, has shown a consistent buying streak since Election Day. This indicates strong investor confidence, as they continue to acquire shares in anticipation of potential interest rate pauses or reductions that could enhance corporate earnings by lowering borrowing costs.
Despite the recent rally stalling, the S&P 500 remains less than 1% away from a record high, having achieved 57 all-time highs in 2024. Technical analysts, including Andrew Thrasher from Financial Enhancement Group, note that the market lacks significant bearish signals, suggesting stability in the current upward trend. Stephen Suttmeier from Bank of America highlights that strong breadth in heavily traded US stocks by share volume signals ongoing institutional interest, a bullish indicator for the market.
The S&P 500 Index is currently trading at 6,059.32 as of 13:14 on December 18, slightly up from its last close of 6,050.61. The index opened at 6,047.65, reaching an intraday high of 6,070.67, reflecting continued investor optimism ahead of the Fed's decision.