Market update, 8 December, 2024

We would like to raise the warning on the high level of StockMetrum index (64%).

Although there is room for the short-term growth for the majority of S&P 500 companies, it does not hold for the largest 10. For instance, recent TSLA flourishing was not supported by financial performance. The dynamics of 10 megacaps last week was opposite to the rest of S&P 500, which is also alarming.

Similar pattern took place this year in the beginning of November and was followed by a sharp drop in S&P 500 index. While we don't have a clear indication that the same behaviour is going to happen soon, we would still be carefull with bullish sentiment.

Publication date: 08/12/2024