There is some strange trading action happening in U.S. markets this week. The S&P 500 has seen drops greater than 1.25 percent in two of the last three session, just two weeks after setting an historic high.
There is plenty of hand-wringing: both the S&P and the Dow are now in negative territory year to date, and the S&P 500 is below its 50-day moving average.
Still, at roughly 2,044, the S&P 500 is right in the middle of its trading range this year—from a low of roughly 1,990 at the end of January to the high of 2,117 just a couple weeks ago.
In other words, all we are is range-bound.
There are some eerie parallels to 2014: down in January, up in February, followed by a down start in March. And the rest of 2014 was mostly up.
At the same time, the German and French stock markets are at historic highs, and even Italy is at a three-year high.