In yesterday’s Chart of the Day, we highlighted the pattern within the S&P 500 since the August high where there has been a steady stream of sellers coming into the market in the final hour of trading. To further illustrate the last hour weakness we have seen, consider the fact that YTD through 8/15 the S&P 500 traded higher in the last hour of trading 62% of the time. Additionally, in the 35 trading days following the two-day Brexit sell-off, the last hour of the day was positive 74% of the time. In the 44 trading days since the 8/15 closing high, however, the S&P 500 has traded lower in the last hour of trading more than half of the time (52%).
In order to get a better understanding of what has been driving the last hour weakness in equities over the last two months, in our most recent B.I.G. Tips report, we analyzed the last hour performance of individual stocks during this period to see which ones, and collectively which sectors, have been driving the weakness. Conversely, we also wanted to get a read on what areas of the market were potentially bucking the trend. To view this report, sign up for a monthly Bespoke Premium membership and get 10% off for life ($89/month).