Intraday Volatility

December 08, 2011

This week’s chart depicts the intraday percentage change of the S&P 500 index over the trailing ten years. Several outlying events have been highlighted, however, we will focus on 2011. In the first six months of 2011 (125 trading days), the average intraday percentage change was 1.05%. From July 1, 2011, through December 5, 2011 (109 trading days), the average intraday percentage change was 2.33%. If you were to translate the intraday percentage change into points, the S&P 500 index has traveled 4,717 points to net a year to date return of 1.91%. Given the recent market volatility, it is important to not overreact to short-term market volatility and have your asset allocation guide your decision making process.