3-Day Rally Ends For S&P 500

Includes: SPY
by: Doug Short

The S&P 500's three-day rally ended today with a loss of 0.82% at the close. However, the index is in the green for the week (and month) by 2.12%.

Year-to-date the index is in the red at -8.12% but 15.26% below the interim high of April 29.

From an intermediate perspective, the index is 70.8% above the March 2009 closing low and 26.2% below the nominal all-time high of October 2007.

Below are two charts of the index, with and without the 50 and 200-day moving averages.

Click to enlarge

For a better sense of how these declines figure into a larger historical context, here's a long-term view of secular bull and bear markets in the S&P Composite since 1871.

For a bit of international flavor, here's a chart series that includes an overlay of the S&P 500, the Dow Crash of 1929 and Great Depression, and the so-called L-shaped "recovery" of the Nikkei 225. I update these weekly.

These charts are not intended as a forecast but rather as a way to study the current market in relation to historic market cycles.