This morning's economic news was a strange mix: Inflation slipped further below the Fed's target and Industrial Production was fractionally negative, but Consumer Sentiment hit an eleven-year high. The S&P 500 vacillated during its opening hour, hitting its -0.23% intraday low about 15 minutes after the Consumer Sentiment report. It than began a slow rally that flattened out during the mid-afternoon and accelerated in the final hour. The index ended the day with a 1.34% advance, which trimmed an otherwise ugly weekly loss to an less depressing 1.24%.

The 10-year Note closed at 1.83%, down 15 bps from last Friday's close.

Here is a 15-minute chart of the week. Today's close of 2019.32 resolved the index's apparent indecision about whether 2000 benchmark was support or resistance.

Here is a daily chart of the SPY ETF, which gives a better sense of investor participation. Volume on today's rally was strong.

A Perspective on Drawdowns

Here's a snapshot of selloffs since the 2009 trough. The S&P 500 is 3.40% off its record close on December 29th.

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For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.

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