Chart of the Day - Thursday, April 17, 2025

🏆 Today's Chart of the Day was shared by Grant Hawkridge (@granthawkridge).
 

• The S&P 500 ($SPY) fell -1.4% this week, while the rest of the world ($VEU) rose +2.1%, as the rotation out of US Stocks continued. 
   
• The ratio ($VEU/$SPY) had its best week ever last month. Although this week wasn't as strong, it was still the fifth-best week in the past decade. These momentum thrusts are characteristics of a long-term trend reversal.
   
• Grant points out that $VEU/$SPY reached a 10-month high this week after clearing a confluence of resistance from its October peak and an 18-year downtrend line. The U.S. dominated the rest of the world for nearly two decades, but that trend is no longer intact.
   

The Takeaway: International stocks had their fifth-best week in the past decade versus U.S. stocks, with $VEU/$SPY breaking out to a 10-month high. While U.S. stocks have dominated for nearly two decades, the trend is finally shifting in favor of international stocks. For more on this topic, check out the full note here.