The small-cap-dominated Russell 2000 fell for the 2nd week in a row for its worst performance in 4 months (though bounced modestly off its 50DMA today). Stocks traded in a relatively tight range today – swinging around VWAP – following their only driver – JPY crosses, most of the day. NASDAQ 400 was rescued to ensure the headline-writers do not panic. Treasuries were flat to modestly better on the day but end the week mixed with 30Y -1bp and 5Y +5bps – collapsing the term structure to 6 week lows. Precious metals bounced to end the week +1%, which with the USD closing unchanged on the week, made them the outperformer across asset classes. VIX closed higher for the 4th day in a row (with the curve now its flattest in 28 months).
The S&P 500 is down 4 days in a row for the biggest drop in over 2 months and lowest close in a month but today was a VWAP dance…
Aside from a mid-afternoon, semmingly vol-driven dump and pump, stocks hugged VWAP and the flatline today (with Russell modestlly outperforming and NASDAQ underperforming)…
Gold and Silver were bid today (as WTI slipped)…
FX markets were volatile but JPY strength today dragged the USD back to unchanged on the week…
VIX closed at 2 month hghs and with short term risk the highest relative to medium term risk since August 2011…
The Treasury term structure has flattened dramatically in thelast week or so… to 6-week lows (and critical support)…
as it appears the bond market's "belief" in the recovery is fading…
Charts Bloomberg
Bonus Chart: The Nikkei and The Dow are fighting it out down here…
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/nYt7sDNEoTI/story01.htm Tyler Durden