Chart of the Day - Thursday, April 3, 2025

🏆 Today's Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher).
 

• Today was the worst day for the S&P 500 in nearly five years, with the index sliding -4.8%. $SPX closed near the lows of the day, down -12.7% from its February peak. 
   
• The index rarely drops -4% or more in a single day. Unsurprisingly, these days have historically clustered around times of market stress, such as the bursting of the Dot-Com bubble, the Great Financial Crisis, and Covid. 
  
   
• Andrew notes that -4% declines don't necessarily signal capitulation. More often, they have occurred in the midst of a destructive downtrend. 
   

The Takeaway: The S&P 500 ($SPX) suffered its first -4% decline since the pandemic today. While -4% declines are rare, they typically aren't a sign of capitulation. More frequently, they tend to cluster in the meat of a downtrend.