Our Thoughts On Today A 2% Move In The S&P 500
The S&P 500 was up 2.16% today. There have been several other days this year that have seen the S&P 500 gain more than 2%. Unfortunately, they only exist periods where the S&P 500 is dropping more than -2%.
Last Wednesday the S&P 500 fell -3.29% and then dropped -2.06% on Thursday. Friday saw a bounce of 1.42% followed by a drop of -0.60% on Monday. So the gain today has company and it is ugly.
The last gain of 2% or more was on March 26th when the S&P 500 gained 2.65%. There were two drops of more than -2% in March on March 23rd (-2.04%) and March 22nd (-2.52%).
In February there were three drops of more than -2% (-3.75%, -4.10% and -2.12%) but no gains of more than 2% in that month. However, there were 7 days the S&P 500 gained more than 1% but no 2% moves.
So the lesson to be learned is gains of 2% happen mostly after days with a loss of -2% or more. So be careful of what you wish for.