Pain Trade. The Dow Jones Industrial Average is off to its worst start of any quarter since the last three months of 2008 after dropping 546 points on Thursday. The S&P 500 dropped and Nasdaq Composite also got pounded as markets started to panic. In today’s After the Bell, we…
…examine the S&P 500’s performance after consecutive 2% declines…; …look at why the market might benefit from running in place; …and worry. Is This It?
Do you know what’s not good? Watching bulls buy the dips, only to get slaughtered. But that happened twice in the Dow on Thursday.
The end result was painful. Really painful. The Dow Jones Industrial Average tumbled 545.91 points, or 2.1%, to 25,052.83, while the S&P 500 slumped 2.1% to 2,728.37, and the Nasdaq Composite dropped 1.3% to 7329.06.
And make no mistake—there really is something quite scary about this drop. The S&P 500 is off to its worst start to any quarter since the first three months of 2009. It has now dropped for six straight days, its longest losing streak since dropping for six days in November 2016. And it’s dropped more than 2% during the each of the past two trading days—all while in a clear uptrend (at least until today). “With a failed bounce attempt intraday, we’re starting to register a few more signs of notable pessimism or even outright panic,” explains Jason Goepfert, president of Sundial Capital Research. “It understandable, since this would be one of the few times in modern markets when the S&P 500 suffered back-to-back 2% losses during a generally uptrending market.”
It an interesting observation, but unfortunately is doesn’t tell us all that much, as least not about the long-term. The S&P