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Friday, March 29, 2024

S&P 500 Snapshot: Columbus Day Selloff as the VIX Surges

Courtesy of Doug Short.

The Eurozone started the week with a modest gain with the EURO STOXX rising up 0.23%. But the US indexes celebrated Columbus Day with a big selloff. The S&P 500 closed at -1.65%, just off its -1.68 intraday low as the 4PM bell started ringing. The VIX volatility index surged above the 20 level benchmark associated with increased volatility risk and closed at its highest number since early June of 2012.

The bond market was closed today. The yield on the 10-year Note Friday at 2.31% — the lowest yield since the 2.20% close on June 18th of last year.

Here is a 15-minute chart of the past five sessions.

Here is a snapshot of the VIX daily closes since 2012.

The S&P 500’s closed Friday at its 200-day moving average, a popular point of reference. it ended the day 30 points below the 200M-MA. Columbus Day trading volume was high.

A Perspective on Drawdowns

Are we heading for a 10% decline, the classical definition of a correction? The chart below incorporates a percent-off-high calculation to illustrate the drawdowns greater than 5% since the trough in 2009.

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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.

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