Courtesy of Doug Short.
This morning’s Advance Estimate of Q2 GDP soared above expectations, and this afternoon’s FOMC statement continued the current pace of QE tapering. The S&P 500 responded to the good GDP with a modest 0.45% intraday high about two minutes after the open and then sold off to its -0.38% low early in the lunch hour. The 2 PM FOMC statement made no changes to the pace of QE taper, but we got the usual transitory market blip. The index closed with a 0.01% gain.
The Treasury market had a slightly more palpable reaction to GDP and the Fed. The yield on the 10-year note ended the day at 2.57%, up 10 bps from the previous close. It is now 13 bps above its interim closing low of May 28th.
Here is a 15-minute chart of the past five sessions. The S&P 500 is up 6.58% year-to-date.
Volume was above its 50-day moving average but came in below yesterday’s anticipatory trade.
For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.
