2014.06.2304:00:49UTC+00US stocks at record highs, Dow and S&P 500 take lead

US stocks broke record highs on Friday with the Dow and S&P 500 closing on fresh highs as the New York Stock Exchange witness 52-week highs from the shares of 330 companies.

The S&P 500 landed on a fresh high as it entered its third straight day of record breaking close. The Dow on the other hand had outperformed itself as it beat its June 10 record close with the blue-chip index reaching an all-time intraday high to 16,978.02, just shy of the 17,000 mark.

The Dow Jones Industrial Average is up 0.15% or 25.62 pips to 16,947.08. The S&P 500 Index has a 0.17% gain or 3.39 pips to 1,962.87. The Nasdaq Composite also advances with a 0.20% increase or 8.71 pips to 4,368.04.

The S&P 500 had been on a steady incline, increasing for six days in a row, promoting the idea that market participants be wary of a near-term correction being inevitable.

For the week, the Dow, S&P 500, and the Nasdaq Composite advanced one percent despite the ongoing turmoil in Iraq that threatens the oil supply. The stocks continued to gain as Fed stimulus from last week where Fed chair Janet Yellen announced that it would keep its interest rates low kept investors confident on the market.

Managing director of active trading and derivatives for Charles Schwab, Randy Frederick stated that he hasn't been concerned for weeks up until now. Frederick adds that he's a becoming a bit more concerned now with where the market is as numerous indicators hit levels that are contrary to the normal reading. Frederick also indicated that he's not anticipating a big correction like 10% or so, however, an adjustment of 3-4% next week will not come as a surprise.

One of this indicators is the correlation of the CBOE Volatility Index with the stocks. The CBOE Volatility Index or VIX is typically inversely proportional to the S&P 500. It is now near its lowest since February 2007 while the S&P 500 is at an all-time high. The fact that the VIX is near its lowest for the past seven years while the S&P 500 hits record highs indicates that the market is too complacent that is a cause for concern. The VIX is up 2.2% to finish at 10.86, still far from the long-term average of 20.