As noted in a previous post earlier this week, for the S&P 500 as a whole, there has been a historic lack of volatility over the last several weeks.  While it may seem like stocks have done absolutely nothing during this period, there has actually been a good deal of rotation underneath the surface.  We touched on this in a previous post, but another way to illustrate it is by looking at how sectors have traded during the period of extreme calm for the S&P 500.

Since the 13th of July, the S&P 500 has traded within a range of 2.22% from its intraday high of 2,193.81 on 8/15/16 and its intraday low of 2,146.21 on 7/13/16.  While that range has been narrow, many sectors have seen moves in a magnitude of multiples of the S&P 500.  The table and chart below shows the intraday high/low percentage spread of the S&P 500 and all ten sectors since 7/13.  As shown, all ten sectors have seen wider ranges than the index as a whole.  For seven of those sectors, the high/low range has been more than 5%, and three sectors have traded in ranges in excess of 8%.  So if you have been sitting in Spyders (SPY) or an index fund since the middle of July, it was a quiet second half of the summer.  However, if you were in a portfolio focused in sectors like Energy, Technology, or even Utilities, it has been anything but a ho-hum two months.

high-low-spread

Print Friendly, PDF & Email