Courtesy of Doug Short’s Advisor Perspectives.
The S&P 500 opened the Friday session with a quick selloff to its -0.54% intraday low. It then recovered about two thirds of its morning decline at its noon interim high. A weaker selloff during the lunch hour was followed by a steady recovery to its -0.09% intraday high in the final 30 minutes of trading. The index closed the session with a fractional 0.14% loss for the day, which tallied to a tiny 0.01% loss for the week — a week that started with a record close on Monday.
The yield on the 10-year note closed at at 1.58%, up five basis points from the previous close.
Here is a snapshot of past five sessions in the S&P 500.
Here is a weekly chart of the index. The 0.01% decline from the previous Friday’s close snapped a modest two-week rally.
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.
