Both “Mag 7” ETF, and Gold break out, while VIX reaches lows of year

Technical trends for US Equities are bullish, and the breakout in $MAGS (Roundhill Magnificent 7 ETF) helps bolster the idea that markets likely will finish out their year near the highs.  The US Dollar has diverged negatively from US Treasury yields and has been weakening steadily, while both Gold and Silver have pushed back to new all-time highs. The CBOE Volatility index, meanwhile, has experienced severe weakness in recent days, pulling back to new low territory for 2025 and defensive sectors have been underperforming in recent weeks which fits in with holiday seasonality. While the VIX having hit new lows for 2025 might seem like an issue for those that are attempting to initiate new longs in Equities at current levels, I don’t expect pullbacks (if/and when they arrive) should prove too serious or long-lasting before a push back to new high territory.  Bottom line, I do expect Equities make new highs during the last couple weeks of the year, and feel it’s right to remain bullish, and simply use dips as buying opportunities. 

SPX’s gains on Monday now bring this index back to within 23 points of a new all-time high close.  While $QQQ has negatively diverged in recent weeks (largely given some underperformance by the likes of $NVDA) trends remain bullish and should push higher into end of year.

The rapid deterioration of the VIX following December expiration makes sense given the massive amount of option positions that came off after December expiration.  This quick selloff to new lows likely will correlate with sentiment starting to get more and more bullish if/when $SPX continues to push higher in the weeks ahead.

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