Courtesy of Doug Short’s Advisor Perspectives.
Asian markets were up today with rumors of a big stimulus package in the works. But the optimism didn’t spill over to other major equity indexes. The Euro STOXX 50 closed with a tiny 0.05% gain, and the big three in the US lost ground. The S&P 500 hit its 0.07% intraday high shortly after the open, traded sideways and then sold off in the late morning, hitting its -0.61% intraday low early in the final hour of trading. Some subsequent buying trimmed the loss to -0.36%.
The yield on the 10-year note fell two basis points to close at 1.57%.
Here is a snapshot of past five sessions in the S&P 500.
Volume rose a bit on today’s selling to the vicinity of its 50-day moving average.
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough.
Here is a more conventional log-scale chart with drawdowns highlighted.
Here is a linear scale version of the same chart with the 50- and 200-day moving averages.
A Perspective on Volatility
For a sense of the correlation between the closing price and intraday volatility, the chart below overlays the S&P 500 since 2007 with the intraday price range. We’ve also included a 20-day moving average to help identify trends in volatility.