U.S. Stocks Slide to 3-Month Low on Recession Concern; GM Sinks

“The S&P 500 retreated 4.6 percent to 789.17, dropping below 800 for the first time since November … U.S. Treasury securities and gold advanced as investors sought protection against falling equity values … The S&P 500, the benchmark for American equities, tumbled more than 38 percent in 2008 for its worst year since 1937. The index had its lowest close of last year on Nov. 20 at 752.44, which was its lowest since April 1997. From that level it rebounded as much as 24 percent on Jan. 6.”

Here’s a quarterly chart of the S&P 500 going back to 1980. Now that the 50% retracement level has been thoroughly sliced and diced, a drop to the 660ish level wouldn’t surprise me.

Related: Arrived at Dow 7500, Next Stop 5900?, November 21, 2008