S&P 500 Jumps on Friday, Down a Hair for the Week

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By Doug Short, Advisor Perspectives:

Friday pre-market futures were on steroids with news that Greece submitted a bailout plan to its creditors. Futures drifted higher as the Shanghai Composite posted a 4.57% Friday gain, and some of the Eurozone indexes were rallying in the 2%-3% range. The S&P 500 surged at the open, and moved higher in a couple of waves to its 1.46% intraday high early in the final hour. Some late profit taking trimmed the gain to 1.23%. That was enough to put the index back in the green year-to-date, up 0.86%, but it was a hair shy of logging a gain for the week, which closed with a -0.01% loss.

The yield on the 10-year note ended a volatile week at 2.42%, the top of its 20 bps 5-day range and up 10 bps from yesterday’s close. But today’s close was only a 2 bps change from last Friday’s 2.40% close.

Here is a 15-minute chart of the past five sessions.

S&P 500

Here is a weekly chart of the index, which has closed the week below its 10-week moving average for the third consecutive week and five of the last six.

S&P 500

A Perspective on Drawdowns

Here’s a snapshot of selloffs since the 2009 trough.

S&P 500 Drawdowns

For a longer-term perspective, here is a charts base on daily closes since the all-time high prior to the Great Recession.

S&P 500 Snapshot

By Doug Short, Advisor Perspectives.

The End of the Ends of the World?  Read…  Short Seller: Will We Ever Be “Allowed” to Have a Crisis?

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  1 comment for “S&P 500 Jumps on Friday, Down a Hair for the Week

  1. NY Geezer
    Jul 11, 2015 at 11:05 am

    There is no believable explanation for how this multiyear manipulative market levitation activity can be happening legitimately. The gullible public is told that the “miracle” all lies with new technology such as high frequency trading.

    But the HFT traders behind all of this are not tech wizards. They are just slime traders. They are making crooked money on their trades in the same way crooks have always made money. They cheat.

    When they make bad trades and their banks or funds should suffer a loss they conspire and combine with other HFT traders from dozens of elite banks and funds to manipulate derivatives, futures, and stock interest and FX markets so that their bad trades potential losses become profitable trades. That can be the only rational reason for the many records of hardly a single losing day over years of trading.

    This price rigging requires the coordinated, criminal actions of many of the world’s largest banks, funds and businesses nearly every business day. It is not a miracle of technology. Those of us who are out of the loop are foolish to play the game as we are just asking to be cheated.

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