This morning S&P 500 gave encouraging signs of a rally. The index opened higher and traded to its 1.28% intraday high at mid-day. But it then reversed directions and sold off to its -0.16% intraday low in the final hour. A bit of late buying lifted the index to its 0.16% closing gain, fractionally snapping a three-day selloff.
The bond market reopened after its Columbus Day breather to a bit of action. The closing yield on the 10-Year Note fell to 2.21%, 10 bps below the previous close. The yield on the 30-Year Bond slipped below the 3% benchmark, closing at 2.95%.
Here is a 15-minute chart of the past five sessions.
The recent trend toward increased volume was also seen on today's small price gain.
A Perspective on Drawdowns
Are we heading for a 10% decline, the classical definition of a correction? The chart below incorporates a percent-off-high calculation to illustrate the drawdowns greater than 5% since the trough in 2009.
For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.
