S&P 500 Snapshot: Relief Rally On No Rate Hike
Doug Short | Sep 22, 2016 12:03AM ET
US equities had been in stall mode this week while awaiting yesterday afternoon's Fed decision on a rate hike. The S&P 500 opened higher, sold off to the flat line during the lunch hour and then initiated the Fed trade a couple of minutes before the 2 PM release of the FOMC statement. A divided Fed opted for no September rate hike, which triggered a relief rally that sent the index to its 1.18% intraday high about 15 minutes before the close. The relief rally was somewhat muted by an unusual tally of three dissenting Fed votes. The index ended the session with a trimmed advance of 1.09%.
The yield on the 10-Year note closed at 1.66%, down three basis points from the previous session.
Here is a snapshot of past five sessions in the S&P 500.
Here is daily chart of the index. Volume ticked up modestly on yesterday's Fed drama. The index remains slightly below its 50-day moving average, which it has trailed for nine sessions.
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.
Get The News You Want
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.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.