« Historical Charts and Analysis of Economic Indicators | Main | Earnings Beat Rate Ticks Higher »

Average Daily Market Move Back Below 1%

The S&P 500 has had just two 1% days so far this year, and they have both been positive 1% days.  The biggest down day for the index is still just -0.57% on January 26th.  The huge drop in volatility is surely a welcome relief for most investors.  Last October, 15 of the 21 trading days during the month were 1%+ days.

Below is a chart highlighting the 50-day average absolute daily % change for the S&P 500 going back to 2002.  Over the last 50 days, the index has averaged a daily change of +/-0.79%.  As shown, the reading has dropped by more than half from the high of 1.92% seen just a few months ago. 

It's still crazy to look at this chart and see just how volatile things got back in late 2008/early 2009.  Last year's volatility, while rough, was nothing compared to what we saw during the financial crisis.  At one point in early December 2008, the S&P 500 had averaged a daily change of +/-4.02% over the prior 50 days, which is the highest level ever seen in the index's history.  With the entire US stock market swinging an average of 4% on a daily basis for more than two months, it's no wonder that individual investors are still having a tough time dipping their toes back in the water, even three years later.

Subscribe to Bespoke Premium for the most in-depth earnings season analysis around.

References (4)

References allow you to track sources for this article, as well as articles that were written in response to this article.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>