Chart of the Day - Wednesday, August 30, 2023

Today's Chart of the Day was shared by Caleb Franzen (@CalebFranzen). The Nasdaq 100 ($NDX) has returned to where it was last month, only this time, the crowd is much less euphoric. As Caleb points out, the CNN Fear & Greed indicator peaked at the end of July with an 'extreme greed' reading of 83. After a -7.2% pullback in the Nasdaq, this sentiment indicator has returned to a 'neutral' reading of 50. The term 'healthy pullback' might sound like an oxymoron, but it's the best way to describe the past four weeks. The froth has been extinguished, and sentiment has been reset to more sustainable levels.