Stocks may be showing no sign of slowing down: the , and all finished the trading week at record highs. Nevertheless, an array of red flags should keep investors in check.
, perhaps the ultimate safe haven, moved higher on Friday, even though equities and the U.S. also advanced. As concerning, a well respected sentiment tracker measuring levels of investor euphoria reached an extreme position.
Diminishing Trade Tensions, Central Bank Stimulus Boost Equities
also ended the week with another record, their fourth straight, no doubt fueled in part by positive data from the world’s two largest economies. Additionally, against a backdrop of central bank stimulus and a Fed that’s committed to seem to have left investors with little choice but to keep bidding equities higher.
The S&P 500 and NASDAQ Composite each notched their eighth straight record. For the 30-component Dow, it was the fourth consecutive all-time high.
The climbed for its sixth straight week, crossing over the 9,000 level for the first time in its history.
Conversely, Boeing (NYSE:), the U.S.’s beleaguered aeronautics giant, closed well off its highs, with shares plunging to their lowest since Aug. 14, after Fitch downgraded the stock to A- from A. The move was due to a report of the discovery of new software flaws, further extending the grounding of the company’s 737 MAX.
Technically, the stock inched toward .
VIX Weekly 2017-2020
The volatility index is hovering just above the April low, right before the S&P 500 fell 7%. An inch below that, the VIX’s September low preceded the S&P falling as much as 20%.
The retreated from its highest level since Sept. 20, 2018 to just 1.5% from its Aug. 30 record. The small cap index slipped