Chart of the Day - Thursday, February 27, 2025

🏆 Today's Chart of the Day was shared by SubuTrade (@SubuTrade).
 

• The S&P 500 has slipped -4.6% from a record high over the past six days. It closed at a three-month low today, filling the post-election gap from November. 
   
• While $SPX is barely off a record high, sentiment has turned extremely pessimistic. According to the latest AAII Sentiment Survey, the Bull-Bear spread plunged below -40% this week for the first time since Sept. 2022.   
   
• The Bull-Bear spread has only been lower ten times in the last 30 years. The next 1-2 weeks have been unimpressive. However, the next 6-12 months have only been down once, and returns were stronger than usual. 
   

The Takeaway: It's been over six months since $SPX fell more than 5% from a record high, yet sentiment is similar to you'd see at a major market bottom.