Head-Spinning Swings for S&P 500 Are Raising Stakes for Traders

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Mark Newton, president and founder of Newton Advisors, explains his cautious optimism about the S&P 500 Index. (Source: Bloomberg)
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First the longs got burned. And then the shorts got squeezed.

Of course, that’s what happens in markets. But it’s been forever -- 2 1/2 years, by one measure -- since the S&P 500 Index has hosted this much drama. For three straight days, the benchmark for $29 trillion in equities has moved more than 2 percent, sinking to the worst week in two years before Monday’s stunning reversal.