Wild Week: Biggest Momentum Swing in History, S&P and Dow Recap

Let's recap the week with a look at swings in the Dow, S&P 500, and momentum.

I think that is quite a bit of nonsense, as it measures every intraday swing no matter how small.

Let's look at thing more accurately.

DOW and S&P Trading Ranges

The above chart shows day-by-day changes in futures, rounded to the nearest point.

The weekly fluctuations are quite remarkable. 4747 points for the Dow and 529 points for the S&P 500.

The Dow close last Friday was 25520, the S&P close was 2757 so those are big percentage moves.

Biggest Momentum Swing in History

"The journey from ecstasy to agony is entirely unprecedented, in the United States at least," writes Bloomberg macro strategist Cameron Crise, who earlier noted this inauspicious achievement. "That’s the largest momentum swing in history -- and it’s not particularly close."

The next-closest reversal was a 48-point drop over the same span in 1987.

"This is perhaps one reason to expect that an eventual market recovery might not be totally straightforward," added Crise. "Not only have ’those kids on the trading desk’ never seen a reversal like this, nobody has. How that impacts investor psychology remains to be seen."

Expect more of the same. Stocks are insanely overvalued.

Mike "Mish" Shedlock

No. 1-25

This type of analysis & reporting drives me nuts. Points are meaningless, only percentages matter!


Blacklisted I have to admit that I have never considered the idea that when people or investors around the world begin to loose confidence in sovereign debt they will buy gold~agree~and US stocks. That is an interesting concept perhaps for high yielding stocks so that is at least a possibility. Yet normally they would buy US bonds yielding over 3% and the yield curve would continue to flatten. Strangely enough this past week surprised me~without lookin it up~I think that investors bought short term debt like the 2 year note and other short term debt, and so I think the yield curve steepened. Well if I’m right about that, it kind of supports your idea that as the amount of debt in the world continues to grow at an absolutely unbelievable rate, confidence worldwide in sovereign debt is beginning to be questioned even here in America. There are several articles in Barron’s today especially “Other Voices” Market Swoon Presages an Economic Reckoning.


I've been studying various video documentaries on the ongoing crisis in Venezuela lately. Street scenes and commentaries from the local people directly affected by the collapse of the Bolivar. Highly recommended, for those who are interested in preparing for same, should it happen here. As von Mises suggested, either hard default or destruction of the currency involved, are the only two ways out of a debt induced boom. IMO, only the latter is politically acceptable.


Well said, Mish. There is no reason RMG, or GLD can't become as illiquid as XIV in a panic. Or even SLV, for that matter.