Chart of the Day - Thursday, August 7, 2025

🏆 Today's Chart of the Day was shared by Optuma (@Optuma).
 

• The S&P 500 has stalled for the past two weeks, making zero record highs since late July. Yet, it sits less than -1% from an all-time closing high.

• Optuma notes that this well-deserved pause has brought the bears out of hiding in a big way. This week’s AAII Sentiment Survey saw the largest uptick in bearish sentiment since February's market meltdown.

• The Bull-Bear spread is back in negative territory for the first time in five weeks, signifying a reset in market sentiment. Sentiment is most useful at extremes, and we're nowhere near there, but to paraphrase Sir John Templeton, bull markets thrive on a healthy dose of skepticism.
  
  The Takeaway: While stocks have taken a well-deserved breather over the past two weeks, bearish sentiment has seen a meaningful uptick, marking a healthy reset in the market's mood.