Home > US Stock Indexes Hit New Highs: Good News for Both Buyers and Sellers?

US Stock Indexes Hit New Highs: Good News for Both Buyers and Sellers?

The apparently unstoppable S&P 500 and Nasdaq stock indexes hitting even higher new highs could be good news for buyers to pile into the positive trend. Or, it might be a good time for contrarian traders to go short if you’re not so sure that the bull run can continue.

Since I last wrote about the S&P 500 index hitting a record high, it’s gone even higher. And so has the Nasdaq. Both tech-dominated indexes were helped by Apple stock hitting a new all-time high.

Bullish traders might want to ride this apparently unstoppable trend before it ends, but contrarian traders could see an opportunity to go short for a career-defining profit if a big crash comes. Either way, there’s money to be made if you can guess which way the markets will go next.

What Are the US Stock Indexes?

Although the Nasdaq-100 index tracks the 100 largest non-financial (mainly tech) companies listed on the Nasdaq stock exchange and the S&P 500 index tracks 500 large companies listed on all US stock exchanges, the fact is that both indexes of overly influenced by the share prices of tech giants such as Alphabet (Google), Amazon, and Apple. Not to mention, Microsoft. Therefore, the price movements depend on the fortunes of “big tech”.

Should You Be Buying or Selling the US Stock Indexes?

This chart shows how the S&P 500 chart has gone exponential. I can’t tell you which way to trade it, but I can tell you what I think. The contrarian in me wants to add to my existing short bets, and one day I might be right, but so far I would have been much better off as a buyer.

S&P 500 Index Chart (source: Yahoo! Finance)

US Stock Indexes Price Targets

The S&P 500 index rose about 3% in the past five days, so within a week it could be 3% higher to reach 4665. The Nasdaq index could perform likewise. Then again, either index could lose up to 50% of its value within a short time if there’s a catastrophic crash.

Where Can Buy or Sell US Stock Indexes Today?

Short traders who wish to benefit from falling prices can sell stock indexes by placing spread bets, selling contracts-for-difference (CFDs), or buying “put” options with online brokers. Long traders or investors who wish to benefit from rising prices have more possibilities to also buy stock indexes via exchange-traded funds (ETFs). Either way, take advantage today with one of these brokers:

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