I like revisiting this chart that I’ve posted over the last two years analyzing how many trading days had +/-1% moves in the S&P 500 and as a percent, how often they occurred.
If you looked at the end of last year, we were reaching a decade-high in intraday volatility in the index suggesting more trading than investing was going on. Doesn’t take a brain surgeon to hypothesize that it could spill over into 2023 but surprisingly, it didn’t.
Out of the 251 trading days this year, only 90 of them say intraday price movements of +/-1%, or ~39%. What’s interesting to note too is that the average high intraday move was 0.56% whereas the average low was -0.47%.
This was a sharp drop from the high of 0.81% and low of -1.0% in 2022 but very similar to 2021 (H: 0.53% / L: -0.43%).
Could the market be turning a corner in 2024 or do you think we can expect more volatility in the upcoming election year with suggested rate cuts on the horizon?
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