Stock Volatility Is Back, A Sign Of An Aging Bull?

MARK JEWELL

Stock market volatility is back, a signal to some experts that the powerful rally that started in early March may be coming to an end.

The Dow Jones industrial average rose or fell more than 100 points in seven of the past 12 trading days, capped by a 205-point advance on Thursday that left the index almost 53 percent higher than its closing level on March 9.

The Dow's muted 17-point gain on Friday masked the fact that it swung nearly 108 points throughout the day after the government reported the unemployment rate rose to 10.2 percent in October.

The latest volatility surge comes after a calm stretch. Over the preceding two months, there were just eight days where the daily Dow change exceeded 100 points.

While the volatility brings back memories of last fall's financial crisis, few analysts are predicting a huge downdraft is coming. Instead, they say it's not uncommon to see choppy trading patterns when investors begin to fret that a bull market is running out of steam.