Chart of the Day - Friday, February 7, 2025

Patrick Dunuwila
February 7, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by @DualityResearch.
 

  • The last two weeks have been eerily similar. The S&P 500 ($SPX) gapped lower on Monday, rallied throughout the week, and sold off on Friday. However, it only fell -0.2% this week, versus -1.0% last week. 
     
  • Since December, $SPX has been in a messy consolidation phase. While the index has stalled over the past two months, the percentage of AAII Bears has risen to 42.9%, marking its highest reading since October 2023. 
     
  • Duality also points out that the Equal-Weight Consumer Ratio ($RSPD/$RSPS) has broken out to all-time highs over the past two months. 
     

The Takeaway: While the S&P 500 has been in a choppy consolidation phase over the past two months, sector rotation has been healthy, and bearish sentiment has risen to its highest in over a year.  

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