Daily Chart Report π Tuesday, February 25, 2025
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Todayβs Summary
Tuesday, February 25, 2025
Indices: Dow +0.37% | Russell 2000 -0.38% | S&P 500 -0.47% | Nasdaq -1.24%
Sectors: 5 of the 11 sectors closed higher. Consumer Staples led, rising +1.42%. Communications lagged, dropping -1.48%.
Commodities: Crude Oil futures dropped -2.50% to $68.93 per barrel. Gold dropped -1.50% to $2,919 per oz.
Currencies: The US Dollar Index fell -0.39% to $106.29.
Crypto: Bitcoin dropped -3.25% to a three-month low of $88,576. Ethereum fell -0.83% to $2,492.
Volatility: The Volatility Index rose +2.37% to 19.42.
Interest Rates: The US 10-year Treasury yield dropped to 4.298%.
Here are the best charts, articles, and ideas shared on the web today!
Chart of the Day
π Today's Chart of the Day was shared by Ian McMillan (@the_chart_life).
- Consumer Staples ($XLP) advanced for the third straight day, while the S&P 500 ($SPY) declined for the fourth straight day, representing a flight to safety.
- $XLP has outpaced $SPY for five consecutive weeks. Ian points out that the ratio ($XLY/$XLP) is testing a two-year downtrend line.
- When this ratio emerged from a multi-year downtrend in 2018 and 2021, it was an early warning sign to investors. Both scenarios preceded a double-digit decline in the S&P 500.
The Takeaway: Consumer Staples are testing a multi-year downtrend line relative to the S&P 500 ($XLP/$SPY). A breakout would be a red flag for the broader market, while rejection would be considered bullish.
Top Links
Red Light for Risk Appetitie - The Strazza Letter
Steve Strazza points out that the Consumer Ratio ($XLY/$XLP) is waving a red flag.
March Not as Strong in Post-Election Years - Almanac Trader
Jeff Hirsch examines how stocks have historically performed in March.
Technical Tuesdays π with The Chart Report - X
Here's the recording of today's discussion on spaces. Join us live on X every Tuesday at 11 am ET.
Today's Number is... 55% - The Daily Number π―
Grant Hawkridge looks at the latest breadth numbers.
Quote of the Day
"Youβre going to make mistakes. If youβre terrific in this business youβre right six times out of 10."
- Peter Lynch