Courtesy of Doug Short.
Yesterday’s big selloff in the S&P 500 continued today, although we got a brief headfake at the open with a 0.45% intraday high about 15 minutes into the trading. The index vacillated until around 2PM, when the selling accelerated. the -1.15% closing tally was, to two decimal places, the intraday low. The S&P 500’s tech-heavy cousin, the NASDAQ, plunged 2.33%.
The yield on the 10-year Note ended at 2.31%, down 3 bps from yesterday’s close and at an interim low — the lowest yield since the 2.20% close on June 18th of last year.
Here is a 15-minute chart of the week.
Here is a weekly chart of the S&P 500. The 3.14% decline was the largest since the 4.30% cliff-dive in mid-May of 2012. Volume increased volume on this week’s selling.
A Perspective on Drawdowns
Are we heading for a 10% decline, the classical definition of a correction? The chart below incorporates a percent-off-high calculation to illustrate the drawdowns greater than 5% since the trough in 2009.
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.
