On Thursday the popular averages were shoved down hard amid heavy trading volume. Rising interest rates raised concerns about the discounted values of future earnings.
Above is my three-month chart for the S&P 500 ETF (SPY). The panic selling amid heavy trading volume in late October appears to have been a precursor of a significant bottom. The move upward following the US elections pushed the SPY well above its 50-day SMA, leading to an all-time closing high on November 16. After the SPY hit more record highs there was a dip, before a bounce commencing mid-December. On January 8 for a second day it reached all-time intraday and closing highs.
After a short pause, the SPY popped upward following a peaceful presidential inauguration, leading to all-time intraday and closing highs on January 21. Another all-time intraday high was touched on January 26, then the SPY was shoved down amid heavy trading volume on January 27 & 29 with a bounce in between. The 50-day SMA was slightly penetrated on January 29 before the SPY pushed above on February 1, with continuation toward an all-time intraday on February 16. Then a drift downward, but remaining above the 50-day SMA, which proved supportive on Tuesday and Thursday.
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