Wild day for markets yesterday with Nasdaq erasing a 5% drop and finishing positive. Here's a couple of interesting facts about yesterday.
The S&P 500 has recovered from an intraday loss of more than 4% only three times (since HLC data began in 1977):
- Jan 24, 2022 (yesterday)
- Oct 16, 2008 = down -4.63% and closed up 4.25%
- Oct 23, 2008 = down -4.28% and closed up 1.26%
Wild volatility like this tends to happen in a bear market, not a bull market. The only example of this kind of trading before today was in October 2008. That was the beginning of the market falling apart, it would go on to decline another 28% until March 2009.
Also, $SPY traded over $100b worth of shares for only the second time ever. March 2020 was the other time - we all remember that month.
Keep in mind that despite the huge reversal day we saw yesterday, NASDAQ net lows still outpaced net highs, which is a bearish indication.
VIX is above 30 and Put/Call ratio is at its highest point since March 2020. Both indicators are showing fear in the market.
The S&P 500 has recovered from an intraday loss of more than 4% only three times (since HLC data began in 1977):
- Jan 24, 2022 (yesterday)
- Oct 16, 2008 = down -4.63% and closed up 4.25%
- Oct 23, 2008 = down -4.28% and closed up 1.26%
Wild volatility like this tends to happen in a bear market, not a bull market. The only example of this kind of trading before today was in October 2008. That was the beginning of the market falling apart, it would go on to decline another 28% until March 2009.
Also, $SPY traded over $100b worth of shares for only the second time ever. March 2020 was the other time - we all remember that month.
Keep in mind that despite the huge reversal day we saw yesterday, NASDAQ net lows still outpaced net highs, which is a bearish indication.
VIX is above 30 and Put/Call ratio is at its highest point since March 2020. Both indicators are showing fear in the market.