Stock Market Thursday Rebound

By: PhilStockWorld

Courtesy of Doug Short: Before the market opened, the weekly initial jobless claims missed the mark, but the Advance Estimate for Q4 GDP was a solid 3.2% — in line with expectations. The S&P 500 surged at the open, consolidated for an hour or so and then rallied to its 1.38% intraday high during the lunch hour. The index traded in a relatively narrow range and closed with a trimmed gain of 1.13%. With one day to go, to the index is up 0.22% for the week.

Here is a 15-minute look at the week so far.

The yield on the 10-year note rose 3 bps to 2.72%. Its interim high was 3.04% at the end of 2013.

Here is a daily chart of the index. Today was the second advance of the past six sessions. Volume was 18% above its 50-day moving average, but that was lower than any of the four down days.

Here is a look at the S&P 500 drawdowns (percent off highs) since the market bottom on March 9, 2009. I’ve highlighted the declines in excess of 5%. Was yesterday a drawdown bottom?

The S&P 500 is now down 2.93% for 2014.

Here is a longer perspective, starting with the all-time high prior to the Great Recession.

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.

- Phil

www.philstockworld.com

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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