There Have Been More Down Days In The Market In 2022 Than Any Time Since This Year

It doesn’t take an expert trader to look at a chart of the S&P 500 and determine that 2022 hasn’t been pretty. Exactly how ugly the year turns out for the overall stock market remains to be seen.

As we currently stand, there has been a higher percentage of down days than in any year since 1974. See the below chart from Bespoke Investment Group:

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According to the chart, in most years, the percentage of red days hangs out right around, and usually below, the 50% mark. But, this year, almost 57% of trading days have been down days. It is significantly higher than the percentage of red days between 2007 and 2008, as well as in the 2001 dotcom crash.

In 1974, the S&P 500 finished the year down nearly 30% (29.7% to be exact). Currently, the SPDR S&P 500 ETF SPY is down a little bit more than 25%.

According to Bespoke, barring a major reversal in Federal Reserve policy, which is only taking on a hawkish stance even as economic activity shows signs of weakness, "2022 could end up in the record books.”

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There is still hope for the markets in 2022, but positive momentum will most likely be contingent on the Federal Reserve easing its monetary policy. So, before you buy the dip, remember that nearly six in 10 days have been red days in 2022.

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