Chart of the Day - Friday, October 25, 2024

🏆 Today's Chart of the Day was shared by Duality Research (@DualityResearch).

• The S&P 500 snapped a six-week winning streak, falling -0.96% this week. While the index is less than 1% below record highs, bulls have vanished in fear of the election and a big week of corporate earnings.
   
• The percentage of Bulls in the latest AAII Sentiment Survey fell to a six-month low of 38% this week, down from 49% two weeks ago. Over the same period, Bearish sentiment increased from 21% to 30%.
   
• The Bull-Bear spread has been positive for 26 weeks now, marking its longest streak since 2015. While the spread remains positive, this sentiment gauge has seen its worst two-week drop in six months.
   

Takeaway: Bullish sentiment has fallen dramatically over the past two weeks ahead of the election and a big week of corporate earnings. However, the S&P 500 is on track for its best year since 1999; it's less than 1% from record highs, and we're entering a seasonally bullish time of year.