Courtesy of Doug Short.
Apple’s blowout numbers after yesterday’s close may have triggered a positive open, but the major US indexes wobbled through the morning and rolled over in the final hour. The S&P 500 hit its 0.64% intraday high shortly after the open and sold off in two waves, a small one in the morning and a large one in the afternoon. It closed with a loss of -1.35%, fractionally off its 1.38% intraday low. Today’s FOMC statement was obviously no help to the market.
Are we seeing some evidence of a flight to the safety of Treasuries? The yield on the 10-year Note closed at 1.73%, down 10 bps from yesterday’s close. The yield on the 30-year Bond closed at 2.29%, an all-time low.
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 increased on today’s selloff but remains well below the levels we saw during October 2014 dip.
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough. The S&P 500 is 4.23% 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.
