Yesterday's gain snapped a three-day selloff in the S&P 500, but the selling resumed today. The index opened in the red at its intraday high, down 0.5%, and sold off sharply in the morning and more slowly in the afternoon. The index closed at its -1.62% intraday low -- the fifth worst daily close of 2014. The other four ranged from -2.00% to -2.28%.
The yield on the 10-year Note closed at 2.52%, down 5 bps from yesterday's close.
Here is a 15 minute chart of past five sessions.
We can see on the daily chart that the index has slipped below its 50-day moving average. Trading volume has been little changed over the past four sessions. The volume surge on Friday was attributable to "Quadruple Witching" options expirations.
A Perspective on Drawdowns
Are we heading for a correction? The chart below incorporates a percent-off-high calculation to illustrate the drawdowns greater than 5% since the trough in 2009.
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For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.
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