Editor's note: the s & p 500 fell more than 1.5% on Thursday, its biggest one-day decline since the last turmoil on may 17. So Wall Street panic helped push the VIX panic index to 16%, its highest level since the November election. The massive sell-off in the U. S. stock market has once again caused concern among investors.
Tencent Securities News according to Bloomberg, the latest unease in the stock market is a normal restlessness, or is it because something worse is happening? If you only analyze the changes in the stock market itself, investors should not be surprised by the changes in the latter.
The rebound in the S & P 500 began a week ago, recovering almost all losses caused by geopolitical tensions. Investment analyst Sundial Capital Research points out that the problem arises when you delve into the stock market rally and see it happen in only a small number of stocks.
In fact, the prices of some companies listed on the New York Stock Exchange have fallen to 52-week lows. The number of these companies exceeds the number of companies that have hit record highs in the last three times when the benchmark index rose. Similar imbalances used to make investors feel painful.AndYesterdayThe 1.5% drop in the s & p 500 is no exception.
Historically, the S & P 500 hit a new low after a weekly fluctuation of more than 1%.
There is evidence that the long-standing equilibrium of the market is gradually breaking down. The s & p 500 has fluctuated by at least 1 per cent for half of the past six weeks. In the previous three weeks, the index had fluctuated by about 0.3 per cent.
With the continuous fermentation of speculation about the influence of political factors on stock prices, the research department of Sundial has put forward a different form of analysis method.This method can be used to test whether the market is operating in a state of overall health or weakening beliefs.Nowadays, there is widespread concern about the uneven distribution of wealth.
The collapse raised questions about the basis of the S & P 500, which had recovered quickly from last week's sell-off by the end of trading on Wednesday.Since 1972, the s & p 500 has reached record highs seven times a week with fluctuations of about 1 per cent, while record lows are more common, almost twice as many as record highs. These changes led to further losses.
There is a serious trading differentiation within the stock index or exchange.
Sundial examined another outline of the stock market, which means that the market has divergent trends, that is, on the same trading day.The number of stocks with the highest and lowest share prices has increased to varying degrees. In five of the past six trading days, the number of stocks in both trends accounted for more than 2.8% of all stocks..This is just a divergence in the stock market since the end of the last bull market in November 2007.
Jason Goepfert, president of Sundial, from Minneapolis, once said: "this is a serious signal."It emphasizes a relationship with an index or transaction.SoDecoupling."
The s & p 500 fell more than 1.5 per cent yesterday, its biggest drop since may. The index rallied after hitting a record high of 2480.91 on Aug. 7 and hovering within a range of about six points. Thursday's decline in the S & P 500 was the biggest change in a year, while all stocks covered by the index are also falling. Last week, there was a similar sell-off in the US domestic stock market because of rising geopolitical tensions.