The leading equity index reversed losses from the previous week to close the week ending February 5th, 2020 on a bullish note.
The declines came as the VIX index pushed higher last week. This led prices to briefly test the 3674 level of support which held up.
Following this test, the S&P500 managed to close higher, settling near a new all-time high of 3891.
The gains mark a five-day winning streak. This marks the best winning streak since November last year. Friday’s weak jobs report also played a role as investors speculate on Biden’s stimulus package.
The volatility index fell to 20.9 on Friday after rising to 37.2 the week before. This could signal that further upside is likely for the equity markets. The earnings season is also supportive of the bull run in the S&P500. over 80% of companies reported earnings that beat estimates.
At the current pace, the S&P500 index has further room to grow. The next key threshold will be the 4000 level which will no doubt be a milestone for the S&P500.
To the downside, the S&P500 is likely to consolidate near the 3871 level as it continues to push higher.