Courtesy of Doug Short.
Weak earnings and an ugly Durable Goods Report for December apparently took their toll today, despite a stunning surge in Consumer Confidence. The S&P 500 plunged in the opening minutes and hit its -1.81% intraday low at 10:45, seemingly ignoring the 10 AM release of the surprisingly cheerful Consumer Confidence report. A slow upward trend ensued and lasted until the mid-afternoon, trimming the decline to -0.68%. But the selling resumed and the index ended the day with a 1.34% loss.
The yield on the 10-year Note closed at 1.83%, unchanged from yesterday’s close.
Here is a 15-minute chart of the past five sessions.
Here is a daily chart of the SPY ETF, which gives a better sense of investor participation. Volume on today’s selloff was unremarkable (although the storm in the northeast may have trimmed today’s investor activity).
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough. The S&P 500 is 2.92% 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.
