Mag 7 Flags into Memorial Day π The Daily Chart Report
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Todayβs Summary
Thursday, May 22, 2025
Indices: Nasdaq 100 +0.15% | Dow 0.00% | S&P 500 -0.04% | Russell 2000 -0.05%
Sectors: 2 of the 11 sectors closed higher. Consumer Discretionary led, rising +0.43%. Utilities lagged, falling -1.43%.
Commodities: Crude Oil fell -0.86% to $60.81 per barrel. Gold fell -0.65% to $3,295 per oz.
Currencies: The US Dollar Index rose +0.24% to $99.93.
Crypto: Bitcoin is currently up +1.21% at an all-time high of $111,007. Ethereum is up +3.33% to $2,636.
Volatility: The Volatility Index fell -2.83% to 20.27.
Interest Rates: The US 10-year Treasury yield dropped to 4.529%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Today's Chart of the Day was shared by Frank Cappelleri (@FrankCappelleri).
- The largest stocks have led the recovery with the Magnificent 7 ETF ($MAGS) gaining +28% since the April 8th low versus +17% for the S&P 500 ($SPY).
- $MAGS is on track for its best month ever, although the fund only launched two years ago. Its seven componentsβ $MSFT, $NVDA, $AAPL, $AMZN, $META, $GOOGL, and $TSLA β represent over 30% of the S&P 500.
- Frank points out that $MAGS has formed a potential Bull Flag over the past seven days. This is a healthy way for price to digest its recent gains after such a sharp advance. A breakout would pave the way for a new leg higher. However, if this Bull Flag fails, it will be a red flag!
The Takeaway: The Magnificent 7 ETF ($MAGS) has formed a potential Bull Flag over the past seven days as it digests its recent gains. $MAGS should resolve higher from this consolidation pattern. However, if this bullish pattern fails, it will likely weigh on the broader market.
Quote of the Day
"The most important thing I have learned over the last 40 years in Wall Street is to realize how little everyone knows and how little I know."
- Gerald M. Loeb
Top Links
MACD Hits Highest Level Ever - CappNotes
Frank Cappelleri highlights a massive swing in the MACD indicator for the S&P 500.
Equity Market Will 'Tire Out' If It Continues on This Rally - CNBC
Jay Woods shares his thoughts on the current market environment.
S&P 500 Sees Another 1% Drop β Should You Be Concerned? π - The Daily Number
Grant Hawkridge looks at yesterday's drop in the S&P 500 and the frequency of 1% moves this year.
Dividend Yields vs. Treasury Yields - Bespoke
Bespoke examines the relationship between Treasury yields and dividend yields for stocks
How About Peru!? - The Strazza Letter
Steve Strazza points out that Peru is exhibiting relative strength.