Chart of the Day - Thursday, May 15, 2025

🏆  Today's Chart of the Day was shared by Ian McMillan (@the_chart_life).
 

• U.S. stocks are having their best week versus international stocks since the election, with $SPY outpacing $EFA by +3.2% this week. 
   
• A potential regime change was underway earlier this year, between the US and the rest of the world. This ratio ($EFA/$SPY) has persistently trended lower since 2010. However, it began to scream higher in December. 
   
• Despite the dramatic rotation out of U.S. stocks this year, the ratio was unable to break its multi-year downtrend line. If this trendline remains intact, U.S. stocks will continue to lead.
   

The Takeaway: U.S. stocks are having their best week since the election versus international stocks. Despite the sharp bounce this year, $EFA/$SPY was rejected at a multi-year downtrend line, suggesting the U.S. will continue to dominate.