Whipsaw

Positioning, earnings, and technical updates. Detailed analysis below...

The US stock market kicked off the week with one of its most volatile sessions in history yesterday. The S&P 500 gapped down -4.7% and traded to a low of $4835, officially hitting Bear Market territory for the first time since 2022 (-21% off ATHs).

Following the big gap down, we saw the index surge +3.4% at highs. This was the largest intraday move for the SPX since Covid times (reminder that March 2020 had multiple limit downs halts, while yesterday’s 851 bps swing came without a halt).

Markets traded another record amount of shares across all exchanges yesterday (that makes 2 in a row after breaking Friday’s record) at 28.8B. This is by far the largest 2-day trading volumes in the history of the US stock market.