S&P 500 Snapshot: Market Slides, But Closes Off The Low

Includes: DIA, QQQ, SPY
by: Doug Short

The selloff in the S&P 500 hit an intraday low, down 4.5% in the final hour of trading, but a rally in the last 35 minutes of trading trimmed the loss to 3.19%. This is the fourth day of decline in the S&P 500, which will go into the last day of trading with a week-to-date loss of 7.11%. We've seen quite a reversal from the 5-day rally of last week.

The index is in the red year-to-date at -10.18%, which is 17.16% below the interim high set on April 29.

From an intermediate perspective, the index is 67.0% above the March 2009 closing low and 27.8% 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.

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.