Courtesy of Doug Short.
The S&P 500 popped and dropped, closing the day with its sixth consecutive loss. The intraday low took the index below its 200-day moving average, but it closed about 1.5 points above this benchmark level. The index is now up 2.33% year-to-date and 5.62% below the interim high set on April 29.
From an intermediate perspective, the index is 90.2% above the March 2009 closing low and 17.8% below the nominal all-time high of October 2007.
Below are two charts of the index, with and without the 50 and 200-day moving averages.
For a better sense of how these declines figure into a larger historical context, here’s a long-term view of secular bull and bear markets in the S&P Composite since 1871.
For a bit of international flavor, here’s a chart series that includes an overlay of the S&P 500, the Dow Crash of 1929 and Great Depression, and the so-called L-shaped “recovery” of the Nikkei 225. I update these weekly.
These charts are not intended as a forecast but rather as a way to study the current market in relation to historic market cycles.
