Largo, FL (September 30, 2014) – Last week was one of the most volatile stock market weeks in several years, with rises and dips that rivaled a good rollercoaster ride. Here is what it looked like:
Monday, Sept 22: S&P 500 Index, which had closed at 2009 on the previous Friday, drops 15 points to 1994.
Tuesday, Sept 23: S&P 500 drops another 11 points to 1983.
Wednesday, Sept 24: S&P 500 rebounds by 15 points to 1998.
Thursday, Sept 25: S&P 500 plummets by 32 points to 1966.
Friday, Sept 26: S&P 500 jumps back up by 17 points.
Quite a ride… volatility is certainly back – but if the market is going back up after dropping, doesn’t it mean everything is still going okay? Maybe a deeper look at the numbers behind the numbers may help:
On Thursday, during the big drop, the New York Stock Exchange saw 89% of all its stocks declining – on Friday, during the big rally, 73% were advancing. On Thursday, 19 stocks hit 52 Week highs, 194 had 52 week lows. On Friday… 22 hit 52 wk highs, 144 hit 52 week lows – that is not a misprint – by a ratio greater than 6 to 1, stocks in the NYSE hit new lows over new highs despite the big up day in the market. That sounds like a very tired bull market – will the European Central Bank or the Federal Reserve supply more espresso to revitalize it? That is a Noteworthy Question.
PEACE Wealth Management, Inc. is located at 13201 Walsingham Road, Largo. For media inquiries call Kris Hartland atl 727.399.8990.
Securities offered through LPL Financial. Member FINRA/SIPC.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.