WhyItDropped

Nasdaq · August 11, 2011

The week that alternated every other day

+4.69%

single-day change vs previous close

Part of a longer stretch

Five months around a downgrade

midway through · 2011-04-29 → 2011-10-03, -18.71% over the whole period

What happened that day?

  • The Nasdaq rose 4.69% on the day
  • That week alternated between heavy falls and heavy gains every other session. This was the fourth reversal
  • There was no single trigger, beyond jobless claims coming in slightly better
  • This pattern appears when neither buyers nor sellers have conviction. Small news then moves prices a lot
  • In Europe at the same time rumours circulated about a French bank, and days later several countries banned short selling in financial shares
  • The size of the swings is itself the information here, more than their direction

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.