TechFlow news, on December 3, according to Jinshi Data, research released by SentimenTrader shows that Wall Street's "fear gauge," the Volatility Index (VIX), closed below 14 last Friday, marking a four-month low. Dean Christians, Senior Research Analyst at the firm, pointed out that since 1995, whenever the VIX dropped from above 20 to below 14, the S&P 500 Index had a 96% probability of rising over the following year, with a median gain of 14.2%.
Market behavior data also supports bullish expectations. SentimenTrader's "Last Hour Indicator" has shown increasing buying volume in the final hour of trading on nine out of the past ten trading days, reflecting investors' urgency to build positions. Currently, the S&P 500 Index is within 2% of its all-time high. Historical data indicates that under such conditions, the index has a 90% probability of rising over the next six months. At present, multiple market indicators resemble those seen during the period of Trump's election victory in 2016, when U.S. stocks continued to strengthen after the election.
