The S&P 500 closed at another record Thursday, propelled by a resurgence in big technology stocks. Stocks have started the second quarter on strong footing, with the broad stock market index rising 3.1%. The largest tech companies have surged ahead as the bond market calmed, easing concerns about the high valuations of growth stocks.
After breaking out from the Bull Flag pattern, the S&P 500 futures formed two Bull Wedge patterns on its hourly chart (see below). This type of price action suggests that the bullish momentum is very strong at the moment which favors even higher prices going forward.
VIX Is Below 20%
The fact that the fear indicator VIX has been trending below 20 for several sessions now supports the bullish narrative for equities.