Pessimism Fades π The Daily Chart Report
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Todayβs Summary
Tuesday, May 27, 2025
Indices: Russell 2000 +2.48% | Nasdaq +2.39% | S&P 500 +2.05% | Dow +1.78%
Sectors: All 11 sectors closed higher. Consumer Discretionary led, rising +2.95%. Utilities lagged, but still rose +0.75%.
Commodities: Crude Oil fell -1.04% to $60.89 per barrel. Gold dropped -1.94% to $3,300 per oz.
Currencies: The US Dollar Index rose +0.66% to $99.58.
Crypto: Bitcoin is currently down -0.41% to $109,016. Ethereum is up +3.80% to $2,661.
Volatility: The Volatility Index dropped -7.83% to 18.95.
Interest Rates: The US 10-year Treasury yield dropped to 4.448%.
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 Ryan Detrick (@RyanDetrick).
- Sentiment is finally normalizing after a rare and extended stretch of pessimism toward stocks. According to the latest AAII Sentiment Survey, bulls outnumbered bears for the first time in 15 weeks.
- Ryan notes that the S&P 500 has historically posted strong gains following similar sentiment resets. There have been only eight prior instances since 1990 in which bears dominated for three consecutive months or more.
With the lone exception of 2008, the S&P 500 was higher 6β12 months later every time. On average, the index gained +8.2% over the following six monthsβroughly double the typical return over that timeframe.
The Takeaway: When persistent pessimism finally fades, it often marks the beginning of a sustained move higher for stocks.
Quote of the Day
"Changes in latitudes,
changes in attitudes."
- Jimmy Buffett
Top Links
Sentiment Shift: Bears Lose Streak, Bulls Take the Mic π€ - The Daily Number
Grant Hawkridge highlights the resurgence of bullish sentiment.
A View from the Floor with Jay Woods, CMT - Freedom Capital Markets
Jay Woods breaks down some key things to watch this week.
Buy Discretionary Stocks on Strong Consumer Confidence Data - CNBC
Chris Verrone shares his thoughts on the current market environment.
Hereβs the Thing About Oil - The Strazza Letter
Steve Strazza examines the relationship between Crude Oil and the Canadian Dollar.
The Big Picture - Don's Dividends
Donovan Jackson looks at Treasury yields and risk appetite.