The economic news today was not good. The Fed’s Industrial Production index for April posted its fifth consecutive monthly decline. Michigan Consumer Sentiment took a dive, its biggest plunge since December 2012. The market was not particularly troubled. The S&P 500 opened higher, vacillated a bit and hit its -0.20% intraday low with the bad consumer sentiment number. It then traded in its second narrowest intraday price range of 2015. A bit of buying in the final minutes lifted the index to a 0.08% gain and its second consecutive record close.
The official yield on the 10-year note closed at 2.14%, down nine bps from yesterday but a down a mere 2 bps from last week’s close.
Here is a 15-minute chart of the past five sessions.
Today was an options expiration day, which skews volume on the index. So let’s take a look at the SPY ETF for a better sense of investor participation (or lack thereof).
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough.
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For a longer-term perspective, here is a charts base on daily closes since the all-time high prior to the Great Recession.
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Images: Flickr (licence attribution)
About The Author
My original dshort.com website was launched in February 2005 using a domain name based on my real name, Doug Short. I’m a formerly retired first wave boomer with a Ph.D. in English from Duke. Now my website has been acquired byAdvisor Perspectives, where I have been appointed the Vice President of Research.
My first career was a faculty position at North Carolina State University, where I achieved the rank of Full Professor in 1983. During the early ’80s I got hooked on academic uses of microcomputers for research and instruction. In 1983, I co-directed the Sixth International Conference on Computers and the Humanities. An IBM executive who attended the conference made me a job offer I couldn’t refuse.
Thus began my new career as a Higher Education Consultant for IBM — an ambassador for Information Technology to major universities around the country. After 12 years with Big Blue, I grew tired of the constant travel and left for a series of IT management positions in the Research Triangle area of North Carolina. I concluded my IT career managing the group responsible for email and research databases at GlaxoSmithKline until my retirement in 2006.
Contrary to what many visitors assume based on my last name, I’m not a bearish short seller. It’s true that some of my content has been a bit pessimistic in recent years. But I believe this is a result of economic realities and not a personal bias. For the record, my efforts to educate others about bear markets date from November 2007, as this Motley Fool