Investors are showing optimism ahead of the Federal Reserve's upcoming interest-rate decision, with expectations of favorable outcomes that could boost stock prices. The S&P 500 has been on a consistent buying streak since Election Day, as indicated by the proprietary DVAN trend line, which measures buying or selling pressure. This trend suggests strong investor confidence, with many anticipating 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 close to a record high, supported by strong breadth in heavily traded US stocks, signaling ongoing institutional interest.
The ProShares Short S&P500 ETF (SH) experienced a slight decline, dropping 0.17% to $41.77 at 13:20 on Wednesday, December 18.