Courtesy of Doug Short’s Advisor Perspectives.
Tuesday’s Yellen rally spilled into Wednesday, but at a decelerating rate. The S&P 500 surged at the open, traded in a narrow range to its 0.84% intraday high around 90 minutes later and then lost steam in a couple of waves during the afternoon. The index closed the session with a modest 0.44% gain … half the size of its Tuesday advance.
The yield on the 10-year note closed at 1.83%, up two 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 index. Volume remains well below 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.
