The week got off to a bad start for most major indexes around the globe. Japan’s Nikkei fell -1.32% and Europe fared worse, with the benchmark Euro STOXX 50 dropping -2.37%. Our preferred benchmark for US equities, the S&P 500, plunged at the open and continued to fall to its -2.70% intraday low about five minutes into the final hour. It closed a tad higher at -2.57%. The index is now down -8.60% for the year and back in correction zone, down 11.69% from its record close on May 21st.
Here is a snapshot of past five sessions.
Here is a daily chart of the SPY ETF, which gives a better sense of investor participation. Volume on today’s selloff was, the fifth consecutive decline, was unremarkable. Note the contrast with the surge in trading volume during the August selloff.
A Perspective on Drawdowns
Here’s a snapshot of selloffs since the 2009 trough.
For a longer-term perspective, here is a log-scale chart base on daily closes since the all-time high prior to the Great Recession.
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