Stocks Continue Higher in a (Very) Quiet Year
Of 2013's 222 trading days thus far, the S&P 500 has closed out 130 less than 0.5% higher or lower. Only 5 days have closed more than 1.5% higher or lower; and just a single day (April 15) closed more than 2% (-2.24%) higher or lower.
Andrew Kassen's weekend post with a historic look at NASDAQ 100 Rallies underscores this point well: the NASDAQ 100 (NDX) has rallied for 13 straight months without a 10% correction - a feat (13 or greater) accomplished only 6 times in its 454-month history.
The downside volatility during these periods is predictably muted; but November 2012-November 2013 has been the quietest, most buoyant run since NDX's inception in January 1985.
The average range as measured from the high of one month to the low of the next is just -2.9%: a record low among these 6 periods. The next highest is -4.5%, covering the 13-month April 2005-April 2006 run.
Even 1994-1995 (a 16-month run without a 10% correction - the longest on record) - the epitome of a benign bull market - was more volatile at -5.1%, making this a deafeningly quiet year.