Wednesday is the new Tuesday. From the moment equities closed yesterday, they rallied on another macro data-less day. The US open sparked another JPY-based run higher and then the pump-and-dump after FOMC cleared the way for VIX – which closed at its lowest in 9 months (on the day the FOMC warns of complacency concerns) – to lead stocks back to the week's highs. Credit was not as excited – just like Monday (before Tuesday's reality-check for stocks). Goldman took the shine off things late on by explaining to BTFD'ers that "there were no surprises" and stocks faded modestly. Treasury yields closed higher (2-3bps) but rallied post-FOMC. Gold down modestly, USD flat, and WTI crude up to almost $104.
VIX… at 9-month lows on the day the Fed said " LOW VOLATILITY IN MARKETS MAY INDICATE COMPLACENCY"
The S&P 500 never looked back from yesterday's close…
Post-FOMC…
As shorts were squeezed once again…
When stocks ran to the highs, it was all VIX…
As Bonds and JPY disconnected…
Just as stocks disconnected from credit in Monday and reconnected on Tuesday, so we saw Wednesday so the same…
Treasuries rallied post-FOMC (as stocks did)
The USD dumped after the FOMC…
and here's your day across asset classes…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1ogkAHQ Tyler Durden