For the 4th day in a row, selling pressure in US equities climaxed as Europe closed. The big buying-panic today though was sparked with about an hour to go as VIX was pummeled lower and stocks levitated to save all kinds of key technical levels – (S&P unch, Nasdaq green on the week, S&P back above its 50DMA, Russell off its 7-month lows). Trouble with all that exuberance… bonds, the USD, commodities, JPY carry, and credit weren't buying it. The USD rose 0.2% for the 2nd week in a row (led by 0.5% weakness in the EUR) and JPY strengthened. Commodities all closed higher on the week, led by oil and copper (+2%) with WTI over $102. Treasuries sold off modestly into the late-day buying scramble in stocks but ended the week 10bps lower in yield (biggest weekly drop in 2mo, lowest in 6mo). VIX plunged back to almost 12 with its biggest daily drop in a month. T-Bonds and Bullion are both +7.2% YTD, S&P +1.6% YTD, Russell 2000 -5%YTD.
Behold… The VIXnado…
Which dragged stocks up to critical levels and off other critical levels…
S&P Sectors on the week…Financials worst, Tech best
But bonds didnt buy it today…
Nor did credit…
Nor did JPY carry
But leaves them lagging on the year still.. notice that the price appreciation of the US Treasury Long Bond and Gold are now equal for the year…
On the week, bonds rallied notably…
Commodities gained…
and the USD rose modestly led by EUR…
As a gentle reminder, credit markets are at best flashing orange if not red…
Charts: Bloomberg
Bonus Chart: Those "costs" are mounting up…
via Zero Hedge http://ift.tt/1k9l4yR Tyler Durden