Markets ended last week with another outlier day (a trading day beyond +/-1.50%). After having 77 outlier days in 2022 (which is the third most outliers for a single year since 1950), there have been three outlier days so far in 2023. During a typical year that exhibits normal, rational behavior, the S&P 500 is expected to have around ten to twenty outlier days. Remember, the markets did not enter into 2023 during a normal, rational market environment.
That being said, volatility has begun to fall in recent weeks, as the markets moved sideways in late December, and rose slightly into the new year. Right now, the S&P 500 sits at a point of previous resistance: its 200-day moving average of price.
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