S&P Drops 4th Week In A Row – Worst Streak In Over 3 Years

Despite a Bullard-bullshit-driven rampalicious surge in the last 36 hours, this is the first weekly close below the 200DMA for the S&P 500 in 2 years and longest losing streak since August 2011. Today was the best day of the year for the Dow Industrials and 4th up-day in a row for the Transports (which ended the week up 3%) as the major indices saw significant divergence on the week. The USDollar closed lower for the 2nd week in a row with EUR strength the main driver. Treasury yields ended the week remarkably stable (30Y -3bps, 5Y -11bps) up 30-40bps above intraday lows on Wednesday. Despite USD weakness, only gold managed gains in the commodity complex. Oil bounced off $80 but ended the week down 3.2% (around $82). VIX was slammed lower at the open today, closing -3 at 22 (+1 on the week).

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Before we begin…

Friday Humor: 1)Yellen talks Inequality and Opportunity 2)Obama hires a Ebola Czar that isn't a doctor 3)Vice President's son is doing coke

— Stalingrad & Poorski (@Stalingrad_Poor) October 17, 2014

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Umm Small Caps today!!

Quite a divergence in indices this week – as favored shorts were rip-squeezed sending Trannies and Small Caps surging…

As everything took off after Bullard's QE4 comments (and was helped by Coeure)

VIX was jammed lower at the open today (likely reflecting ECB's Coeure's QE comments)…

Treasuries were insane this week – what can only be called a total pukefest on Wednesday on record volumes saw bond yields rip back higher in the last 2 days to close 3-10bps lower on the week..

The USDollar closed down 0.7% (2nd week in a row) with CAD weakness ofset by EUR strength…

Despite USD weakness, only gold managed gains on the week (2nd up week in a row – first time since July). Oil bounced but still ended notably lower on the week