With troubles in Europe causing the market to see larger, more extreme moves to both the upside and downside, we have also seen a rise in the frequency of 'all or nothing' days. We consider all or nothing days in the market to be days where the net daily A/D reading in the S&P 500 exceeds plus or minus 400.
After a record number of occurrences last year, all or nothing days for the S&P 500 were non-existent in the first two months of 2012. Since then, however, we have seen ten all or nothing days in less than three months, with three so far in the month of May. Even after the increase, however, the current rate puts the S&P 500 on pace to see 25 all or nothing days in 2012, which would be the lowest annual rate since 2007.
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