Investing.com - Financial Markets Worldwide

S&P 500 Snapshot: First Four-Day Selloff In 2013

Published 08/20/2013, 02:25 AM
Updated 07/09/2023, 06:31 AM
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There were no significant economic announcements to move the market yesterday, but when the US indexes opened, the financial press was talking up the -5.58% close of the Jakarta Composite and the less dramatic -1.56% close of the Mumbai SENSEX. Also when the opening bell rang, most of the eurozone was in the red. Not surprisingly, the S&P 500 opened lower, but it immediately reversed direction and hit its 0.20% intraday high thirty minutes later. The rest of the day was a steady decline to its -0.59% close, one basis point off its intraday low. Yesterday marked the first four-day decline of 2013.

The yield on the 10-year note closed at 2.88%, up 4 bps from Friday's close and over double the yield of its historic closing low of 1.43% in July of last year. The CBOE put the intraday high at 2.899%, just an atom's breadth from 2.90%, a level when alarm bells will go off (according to UBS's Art Cashin in a CNBC interview).

Here's a 5-minute look at yesterday's controlled selling with a bit of Friday afternoon for context.
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We see on the daily chart that the S&P 500 has fallen below its 50-day moving average, but yesterday's selling was on light volume.
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The S&P 500 is now up 15.42% for 2013 and 3.72% below the all-time closing high of August 2.
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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.

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