Courtesy of Doug Short.
The S&P 500 closed the day with its fourth consecutive gain, the best rally so far in 2015 and the longest since the five-day winning streak that ended on Christmas Eve. Today’s 1.53% gain, thanks to ECB President Draghi bringing out the “QE Bazooka”, puts the S&P 500 in positive territory for the second time in 2015. (In case you’ve forgotten, it closed up 0.16% YTD on January 8th.)
The 10-year Note closed at 1.90%, up three bps from yesterday’s close.
Here is a 15-minute chart of the past five sessions. The index was briefly confused at the open, as the news from the ECB was unfolding. The morning rally then appears to have bumped into resistance at its 50-day moving average, highlighted in green. But the resistance gave way after a couple of hours.
Here is a daily chart of the SPY ETF, which gives a better sense of investor participation. Volume was up from yesterday, but perhaps not as dramatically as the Eurozone Bazooka might have led one to expect.
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough. The S&P 500 is 1.31% off its record close on December 29th.
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.
