Courtesy of Doug Short’s Advisor Perspectives.
On a day with little economic news, the S&P 500 opened in the red and spent the day oscillating in the third narrowest trading range of the year from its -0.53% morning low to its 0.31% high during at the end of the lunch hour. For some context, today’s 0.84% percent range from low to high is almost a full percent below the 2016 intraday average of 1.80%. The fractional closing gain of 0.09% extended the rally to five days, the longest since the five day advance that begin on September 29th of last year.
The yield on the 10-year note closed at 1.91%, up three basis points from the previous close.
Here is a snapshot of past five sessions in the S&P 500.
Here is a daily chart of the SPY ETF, which gives a better sense of investor participation (or lack thereof). Volume today was quite light.
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.
