The S&P 500 started lower on Tuesday, then experienced a surge of buying as the day went on, ending the session on a positive note. This comes after a notable change last Friday when both the S&P 500 and the Nasdaq broke through important resistance levels. As we approach the end of the year, our focus is on favorable long positions. Currently, the S&P 500 is leading the way while the Nasdaq is slightly behind. Notably, NVDA increased by 3%, and other companies like AVGO, GOOGL, and AMZN also made gains. TSLA is expected to rise due to developments in robotics.

Gold and Silver Gains

Gold and silver have shown positive trends, though caution is advised regarding short positions in oil. We will keep providing regular updates, along with intraday insights and premium content through our Telegram channels. Look out for our weekend articles, too. Monica Kingsley, a trader and financial analyst, has been sharing insights and services with traders and clients since February 2020. We anticipated a dip at the open, which turned out to be a great opportunity for long S&P 500 futures. This surge reinforces the trend reversal that began last Friday when the index went above the 6,000 level. The current situation strongly supports buying calls or selling puts during any minor pullbacks as we finish the year. We prefer S&P 500 (ES) contracts over Nasdaq (NQ) futures, as the rally is broadening beyond just major tech stocks. The latest CPI report from November 2025 shows core inflation has dropped to 2.8%, which has led the markets to expect a Federal Reserve rate cut by March 2026. This environment typically boosts the overall market, rather than just tech stocks.

Volatility Index Analysis

The CBOE Volatility Index (VIX) backs up this positive outlook, having recently fallen below 12, a level rarely seen since the interest rate hikes of 2023. This low volatility means buying call options is cheaper and suggests there’s little fear in the market. We see this as a signal to maintain leveraged long positions into the new year. Key players like NVDA are showing strong rebounds after recent announcements in robotics and AI. Stocks like GOOGL and AMZN confirm that institutional investors are returning to reliable growth stocks. This adds more confidence to our bullish outlook, especially for those trading single-stock options. Strength in gold and silver aligns with expectations of a weaker dollar as we move into 2026. Gold futures have maintained support above $2,450 per ounce for three consecutive weeks. These trends in precious metals can be traded using futures or options, reflecting the broader shift away from the tight monetary policies of 2023-2024. Create your live VT Markets account and start trading now.

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