Doug Short

About the Author Doug Short

Doug Short is first-wave boomer with a lifelong interest in markets and the economy. His professional career had been a satisfying split between academia (English Professor at North Carolina State University) and Information technology (IBM and GSK). Doug retired in 2006 to devote himself full-time to his dshort.com financial website. The domain has now been acquired by Advisor Perspectives, and Doug has been appointed the Vice President of Research. Doug is especially interested in the economy, long-term market trends and behavioral finance.

SPDR S&P 500 ETF Trust (SPY) Snapshot: The Fed No-Hike Rally Continues

Equities around the globe continued to rally on central bank policy, namely the Fed’s decision to hold off on a rate hike. The rally was especially strong in Europe, where the DAX and CAC rose 2.3% and the FTSE 1.1%. The S&P 500 (NYSEARCA:SPY) was a bit less jubilant. It popped at the open and traded in a narrow range to its 0.78% intraday high, and then traded sideways to its 0.65% closing gain.

The yield on the 10-year note closed at 1.63%, down three basis points from the previous session and 10 basis points off its interim high seven sessions earlier on September 13th.

Here is a snapshot of past five sessions in the S&P 500.

Here is daily chart of the SPY ETF, which gives a better sense of investor participation. The ETF, like the underlying index, has jumped above its 50-day moving average. But investor participation in today’s rally continuation was a bit subdued.

A Perspective on Drawdowns

Here’s a snapshot of sell-offs since the 2009 trough.

Here is a more conventional log scale chart with drawdowns highlighted.

Here is a linear scale version of the same chart with the 50- and 200-day moving averages.

A Perspective on Volatility

For a sense of the correlation between the closing price and intraday volatility, the chart below overlays the S&P 500 since 2007 with the intraday price range. We’ve also included a 20-day moving average to help identify trends in volatility.

 

SPY, SPX, QQQ, IWM, VIXY, SQQQ VOO