Sell in May? Actually May markets aren’t that bad if you look at the past three decades. But May 2013 got off to a bad start. The ADP jobs report was a bit spooky, the Manufacturing ISM was weak, construction spending dipped -1.7 percent, and the 2 PM Fed Minutes reversed the downward market trend for less than 30 minutes.
The S&P 500 fell at the open, recovered about half its loss, and then drifted to its -0.93 percent close. The one minor market intrigue was some gaming of the 2 PM release of the Fed minutes: sell the rumor, buy the news. But, alas, the Fed didn’t discuss buying SPY shares.
Here is a 5-minute look at today:
Here is a 15-minute chart of the week so far:
For a “glass half full” observation, we can see on a daily chart that today’s selloff didn’t have any volume confirmation:
The S&P 500 is now up 10.97 percent for 2013 and 0.93 percent below the all-time closing high of April 30:
Doug Short Ph.d is the author of dshort at Advisor Perspectives.