Fun Facts from 2014 About Up and Down Days in the Market

Oct 23, 2014: 3:04 PM CST

Like any year, 2014 has seen its share of ups and downs in the market (more ups than downs, actually), so I thought it’d be interesting to compare the up and down days for the S&P 500 so far in 2014.

If anything, it’s a different way to see price and study the character of the market.

Let’s start with a special look at just the up-days that have taken place so far in 2014:

While there’s dozens of methods to view charts, you’ve likely never seen a “up-day only” chart!

Nevertheless, we can look at the frequency (number of up-days in a row) and size of the up-days in 2014.

Specifically, there have been 115 up-days so far in 2014 (out of 203 days), which means that 57% of days in 2014 have been positive.

Taken together, the Average of all up-days in 2014 is 9.3 points in the S&P 500 with a Standard Deviation of 7.40.

Let’s compare that to the down-days in the S&P 500  so far in 2014:

In terms of down-days, there have been 88 down-days so far in 2014 (out of 203 days), which means that 43% of days in 2014 have been negative.

The Average of all down-days in 2014 is higher at -11 points with a Standard Deviation of 10.53 points.

It shouldn’t necessarily be surprising that down-days report a higher average and standard deviation.

Price tends to be more volatile – as we saw through October – when the index falls.

We can even see above that one-day sell events are more visually larger than one-day buy events.

Price more commonly falls faster than it rises.

We also see “holes” on the sell-chart which is where price traded higher consecutive sessions to the upside.

The theme so far in 2014 involves the cluster of smaller, often consecutive up-days against the backdrop of larger, less consecutive down-days.

This type of comparison chart can be helpful for spotting patterns and themes as they emerge and shift over time as trend and volatility also change in the market.

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Corey Rosenbloom, CMT
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2 Comments

2 Responses to “Fun Facts from 2014 About Up and Down Days in the Market”

  1. Gius Says:

    really interesting, noticeable that bars are longer both up and down, the more recent sessions, higher deviations

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