The S&P 500 is currently trading up just over 10% from its closing low on Christmas Eve, so we wanted to take a quick moment to show how dramatically things have changed with respect to how individual stocks are trading relative to their 52-week highs. For the individual stocks in the S&P 500, the are down an average of 22.2% from their 52-week highs. That’s a pretty dramatic shift from Christmas Eve when they were down an average of 29.2%!
The chart below shows how far down each individual component is from its 52-week high as of this afternoon. As shown, nearly half of the stocks in the S&P 500 are trading within 20% of a 52-week high (92 down less than 10% and 152 down less than 20%). At the other end of the spectrum, there are now just 31 stocks trading down between 40% and 50% from their 52-week high while just 14 are down by over half.
The picture today stands in stark contrast to the one we saw just ten trading days ago. The chart below shows where individual stocks were trading relative to their 52-week highs as of the close on 12/24. Here, you’ll notice that the width of the bands to the left of the chart are a lot narrower than the ones above, but then as you move out to the right they widen. For example, whereas there are currently 92 stocks within 10% of a 52-week high, back on the 12/24 there were only 21! Conversely, on 12/24 there were 36 stocks in the S&P 500 down over 50% from their 52-week highs, but today there are less than half that at just 14! What a difference ten trading days can make!