Courtesy of Doug Short.
Today, as far as the world markets were concerned, the Crisis in Ukraine evaporated, and yesterday’s anxieties, in retrospect, were a buying opportunity. The EURO STOXX 50, which plunged 3.02% on Monday, rose 3.02% today. The S&P 500 surged at the opening bell and drifted to its 1.65% intraday high about 15 minutes before the close. A bit of selling trimmed the gain for the day to 1.53%, the biggest one-day advance for the index since December 18th. And of course today’s close set another record high.
With the Ukrainian Crisis now on the backburner, the market will probably turn its attention to Friday’s employment report, which will come into focus with tomorrow’s ADP data.
The yield on the 10-year note closed at 2.70%, up 10 bps from Monday’s close. The interim high was 3.04% at the end of 2013.
Here is a snapshot of the week so far.
Volume on today’s rally was a tad higher than on yesterday’s selling, but it remained below its 50-day moving average.
The S&P 500 is now up 1.38% for 2014.
Here is a longer perspective, starting with the all-time high prior to the Great Recession.
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.
