Courtesy of Doug Short.
US futures began tanking around 6 AM ET, about the same the major European indexes started rolling over. Renewed anxieties of a Grexit (Greek eurozone exit) and a massive outage of Bloomberg terminals no doubt played a role. The EURO STOXX 50 subsequently posted a -2.07% for the day. The S&P 500 opened lower and had dropped a full percent fifteen minutes later. The index then traded sideways until post-lunch swoon took it to its -1.55% mid-afternoon intraday low. A modest late afternoon recovery trimmed the closing loss to -1.13%. The index is down 0.99% for the week.
Today the yield on the 10-year Note closed at 1.87%, down three bps from the previous close and nine bps from last week’s close.
Here is a 15-minute chart of the past five sessions.
On a daily chart we can see that the S&P 500 closed below the benchmark 50-day moving average. Volume was only 12% above its 50-day moving average, which is fairly light given the usual turnover triggered by options expirations.
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough.
For a longer-term perspective, here is a charts base on daily closes since the all-time high prior to the Great Recession.
