The SP500's CAPE Ratio is about to cross above 38 for the 3rd time in history, now higher than 98% of historical valuations. $SPX
Source: Charlie Bilello
Nautilus Research ➡️ 2025 vs. 4-year Election Cycle Composite.
A last "hurrah" before some troubles ahead?
BREAKING: U.S. Dollar
U.S. dollar Index $DXY is now trading below its 200 Day Moving Average by the largest margin in 21 years. Source: Bloomberg
The SP500 has traded above its upper Bollinger Band for the past 8 days.
The last time it did that was in July 2024 and then $SPY promptly corrected by 10%. Source: Barchart
A golden cross for the S&P 500 (the S&P 500's 50d moving average has crossed above its 200d moving average).
Source: Bloomberg, Kevin Gordon
McDonald's Reacting on Major Swing Support
McDonald's (MCD) has consolidated 13% since the highs and is now back on the major swing support zone between 276-286. Yesterday, we saw some positive price action on the 4-hour chart, indicating a potential short-term trend change. Keep an eye on the price action over the next few days for further developments. Source: Bloomberg
BYD Entering Major Support Zone
Since the May high, BYD (1211 HK) has consolidated more than 20%! The stock is now entering a major support zone between 103-123. Additionally, BYD is back at the 61.8% Fibonacci retracement, which places it in the discount zone. Keep an eye on the price action over the next few days for potential developments. Source: Bloomberg
UBS Showing Positive Reaction Above Major Support
UBS has retested the major support zone between 22.54-24.74 for the second time. The last retest in April saw an exaggerated move, with the stock dipping as low as 20.66, but it managed to close within the support zone, confirming its significance. This week, the price action has been positive, with the stock holding steady above support. Keep an eye on the 26.37 level—if the stock closes above this level on Friday, it would be a strong bullish signal. Source: Bloomberg
