Sellers are scarce in the US stock market, indicating potential overconfidence as equities hit new highs. S&P 500 sets fifth record in nine days, with decreased trading volume for falling stocks. This trend has preceded past pullbacks, typically around 5%. Investors largely unfazed by recent trade war developments. Earnings season may test market’s resilience.

Market signals suggest potential for pullback but conflicting views on market trajectory. Factors like technology stock concentration raise concern, while lighter institutional trader positioning hints at further gains. Recent decline in market volatility seen as positive for stocks, with VIX hitting lowest level since February. Investors may be discounting known risks, leading to strong market returns historically.

DataTrek Research strategists note that low VIX level doesn’t signal complacency, but rather a discounting of known risks. Market historically accurate at discounting future events. Exceptional annual returns for S&P 500 when VIX stays below average for extended periods. Market usually more right than wrong in predicting future events.

Read more at Yahoo Finance: In Ominous Sign, Sellers Are Vanishing as US Stocks Smash Record