Courtesy of Doug Short.
Today the S&P 500 logged its 10th one-percent-or-greater decline of 2015. This one followed a mixed bag of economic reports. The March Trade Balance (Exports minus Imports) was the largest deficit since 2008. This will no doubt send the Second Estimate of Q1 GDP lower. On the other hand, the ISM Non-Manufacturing report surprised to the upside. With the April Employment report waiting in the wings, the equity markets sold off sharply. The S&P 500 hit its 0.04% intraday high moments after the opening bell and sold off to its -1.23% intraday low early in the final hour. It closed with a fractionally trimmed loss of -1.18%.
The yield on the 10-year Note closed at 2.19%, up 3 bps from yesterday’s close.
Here is a 15-minute chart of the past five sessions.
On a daily chart of the index, we see that it’s right on its 50-day moving average. Today’s selloff came on routine volume.
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.
