Friday's market was subject to a veritable flood of economic data: The July Employment Report, Personal Incomes and Outlays, ISM Manufacturing and Michigan Consumer Sentiment being the most familiar. After yesterday's two percent plunge, the market was clearly confused. The S&P 500 opened lower, rallied for 30 minutes to its 0.35% intraday high and then sold off to its -0.74% intraday low shortly before the noon hour. During the afternoon it recovered to a fractional gain and then slipped to its 0.29% closing loss. The index was down 2.69% for the week, its worst weekly decline since its -3.02% selloff at the end of May 2012.
The yield on the 10-year Note closed at 2.52%, down 6 bps from the previous close. It is now 8 bps above its interim closing low of May 28.
Here is a 15-minute chart of the week. The S&P 500 is up 4.15% year-to-date.
Here is a weekly chart of the index since 2012. Volume for the week was 23% above its 10-week moving average. I've highlighted a pair of weeks in May 2012, the 3.02% selloff mentioned above and the 4.30% selloff two weeks prior. Incidentally the trough of that 2012 selling was on June 1st, a decline of 9.9%.
A Perspective on Drawdowns
The chart below uses the percent-off-high strategy for illustrating 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.
