S&P 500 Snapshot: The Selling Continues in Advance of the FOMC Meeting

The S&P 500 logged its third consecutive daily loss, a 0.81% decline, fractionally off its -0.84% intraday low shortly before the close. The popular financial press offers two explanations for the selling: 1) a message to the FOMC in advance of its two-day meeting that starts tomorrow and 2) anxiety in advance of the Brexit vote 10 days from today.

The 10-year note closed at 1.62%, down two basis points from the previous close and a only 19 BPs above its record closing low set in July 2012. The 20-year bond yield at 2.01% is at a post-recession low, and the 30-year bond is only 18 BPs above its post-recession low.

Here is a snapshot of past five sessions in the S&P 500.

Here is a daily chart of the index. Volume is unremarkable, but market technicians are no doubt paying attention to the proximity of today's close to the 50-day moving average. Will it provide support during the FOMC mini-drama? Stay tuned!

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.