The volatility of the US stock market has decreased! S&P 500 index encountered resistance at 4200 points.

"The Wall Street Bear" is currently hibernating, but if the S&P 500 index cannot quickly break through 4200 points, they may wake up.

S&P 500 faces strong resistance at 4200 points

Measured by the S&P 500 index, US stocks continued to rise slowly this month, but it has been proven that the resistance above 4200 points or slightly below is very strong, and there is another resistance level at 4300 points.

The bears seem a bit timid at the moment, but if the market cannot break through 4200 points, they will definitely gain some confidence.

At the current level, the S&P 500 index has support in the 4050-4070 range and further support near 3970.

However, falling below 3950 points would be negative and could bring some serious selling.

Volatility of US stocks decreases

Recently, the actual volatility of the S&P 500 index has significantly decreased.

The 20-day historical volatility of the S&P 500 index has now dropped to 11%, the lowest level since November 2021.

The buy signal of the McClellan Volatility Band (MVB) is still valid (although we have widened the spread several times), and it is currently approaching 4200 and rising slowly. (Note:)

This makes the view that the resistance level at 4200 points is more credible.

In the past day or two, the put/call ratio of pure stocks has been on the rise, but they are still buy signals. The weighted ratio is once again approaching the lower area of its chart, so it can be considered overbought.

The number of stocks that hit a 52-week high on the NYSE is slightly higher than the number that hit a 52-week low. Therefore, the indicator continues to be in a neutral state, with neither a buy nor a sell signal.