Tuesday's market will be remembered for one thing: A bogus AP tweet ("Two Explosions in the White House and Barack Obama is injured"). The Twitter hack triggered a one-percent convulsion in the US markets that played out in in about five minutes. Aside from that, the S&P 500 rallied at the open, a faint replica of the surge in the European indexes after a mixed bag of PMI (purchasing managers' index) data from Germany and France apparently triggered hopes of more Central Bank fiddling. The index closed the day with a gain of 1.04%, less than a point from its intraday high during the noon hour (before the infamous tweet).
Here is a 5-minute look at the week so far with the tweet highlighted. In addition to the size of the blip, note the share volume.
Aside from the tweet drama, the more significant news is that astonishing rally in Europe, where indexes posted double and triple the gains of US indexes. Ah the rewards of weak PMI data in today's clever world of trading!
The S&P 500 is now up 10.70% for 2013 and 0.92% below the all-time closing high of April 11th.
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.