Alarm Bells Choppy US Year-End for Both Bull and Bear Signals

Bull & Beer Statues as European Stock Advance Off the Frankfurt Stock Exchange

Photographer: Ralph Orlowski / Bloomberg

The stage is set for a volatile end of the year in the US stock market after signs of a boom and a downturn, both of which reached peak levels in recent times.

The bull is being encouraged by the strength of the current rally. A gauge of momentum – a five-day moving average 52-week high on the New York Stock Exchange relative to lows – is off its highest in just 10 years. The bears are pointing to measures of extreme positive sentiment – such as record call option volume – to ease their case for a pullback.

Sense of momentum for US stock trading at peak levels


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