Stock Market Holiday Rally Takes a Pause
Stock Markets 2013Dec 28, 2013 – 01:13 PM GMT
Courtesy of Doug Short: The S&P 500 went nowhere Friday, snapping its four-day winning streak with a fractional loss of 0.03%. Today’s inaction came on weak volume, and the 0.276% intraday range (percent change from the low to the high) was the smallest of 2013.
According to the U.S. Treasury, the yield on the 10-year note closed at 3.02%, a new interim high and the highest yield since July 2011.
Here is a 30-minute look at the past seven sessions, starting with the big post-FOMC rally on December 18th.
Volume was at holiday levels. The daily chart gives a clear look at the magnitude of the post-FOMC rally, which started with a bounce off the 50-day moving average.
The S&P 500 is now up 29.11% for 2013.
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.
Have a great weekend,
Philip R. Davis is a founder of Phil’s Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing — which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil’s Stock World (www.philstockworld.com)
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