S&P Snapshot: The Two-Day Selloff Ends
Doug Short | May 16, 2014 01:13PM ET
The S&P 500 snapped a two-day selloff with a modest gain, thanks to a rally in the final 90 minutes of trading. The pre-open positive report for April housing starts wasn't a market mover. The S&P traded in the shallow red and then slumped to its -0.32% intraday low after the release of the disappointing preliminary Michigan Sentiment Index. Some buy-the-dip action restored the index to a narrow trading range in the vicinity of yesterday's close. Around 2:30 the buyer's took charge, lifting the 500 to its 0.37% closing gain, just a tad off its 0.40% intraday high. Volume on today's advance was about 5% below its 50-day moving average.
Meanwhile, the yield on the 10-year note closed at 2.52%, up 2 bps from yesterday's close, which was the lowest since July 2nd of last year.
Here is a snapshot of the week.
The weekly tally was a miniscule -0.03%. I've highlighted the tough resistance the S&P 500 has encounted over the past 11 weeks.
Here is a monthly chart on which I've highlighted the four index declines beginning with the Financial Crisis trough.
The chart below uses the percent-off-high strategy for illustrating the drawdowns greater than 5% since the trough in 2009. It's been a while since we've seen anything even vaguely reminiscent of a correction.
The S&P 500 is now up 1.60% for 2014.
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