Stock Market Bad Day, But Only Down 0.08% for the Week

By: PhilStockWorld

Courtesy of Doug Short: This morning’s Consumer Sentiment for April was surprisingly upbeat, but the market had a bad day today, with NASDAQ’s Amazon (AMZN) down a whopping 9.88%. The S&P 500 opened in the shallow red at its intraday high, ignored the positive Consumer Sentiment report, and sold off in a couple of waves to a relatively narrow afternoon trading range. The index hit its -1.01% intraday low at 2:30 PM but trimmed the loss to 0.81% at the close. It was a bad day for the 500, but the index was only down a fractional 0.08% for the week.

The yield on the 10-year note finished at 2.68%, down 2 bps from yesterday’s close and 8 bps above the 2014 low of 2.60%.

Here is a snapshot of the week.

Here is a weekly chart of the index. I’ve highlighted the narrow range of weekly closes alternating between gains and losses. The glass-half-full crowd will see this as a consolidation before the next leg up. The half-empty counterparts might see this as resistance before a correction. We have a market soap opera in the making.

The S&P 500 is now up 0.81% for 2014 and 1.45% off its April 2nd record close.

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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