While maybe not as relentless as the move higher in rates over the last two months, selling in equities has been pretty consistent.  In the year-to-date chart of the S&P 500 tracking ETF (SPY), we show the last 50 trading days in gray to point out that there has been an extremely large number of days during this span where the day's intraday low was lower than the prior day's low. We highlighted this trend in our Chart of the Day last week, but it has remained pronounced since then. In total, 33 of the last 50 trading days have seen SPY make a lower low relative to the prior day's intraday low, and if SPY falls below $420.18 today, it would be a record 34 days in a trailing 50-trading day period where the ETF made a lower low relative to the prior day's low.

The chart below shows the number of days over a rolling 50-day period where SPY made lower lows, and at a level of 33, the current period is tied with three other periods (March 2022, October 2008, and March 2008) for the most since SPY's inception in 1993.  You don't need us to tell you that none of these periods were positive for the market. What makes the current period unique relative to these other periods is the fact that the magnitude of the decline during this period has been relatively mild at less than 10%.  During each of the three other periods, SPY was down at least 10% from a 52-week high and as much as 45% (October 2008).

More By This Author: