ECB Mutiny Sparks Late-Day Selling Scramble As QE Hopes Fade

Once again the internals of the market (advancers vs decliners, new highs vs new lows and trends) triggered a Hindenburg Omen as today's dump-and-pump on the European close and Draghi 'mis-characterization and clarification' headlines left stock green with an hour to go. Then came headlines from Die Welt that appeared to show Draghi has no majority and stocks tumbled into the close (with a small bounce late to get S&P green on the week). For the 2nd day in a row, Treasury yields fell 1-4bps (short to long-end), notably decoupling from stocks after Europe closed. HY Credit also pressed to wider wides after Europe closed even as stocks surged. The USD lost ground as EUR strengthened giving back half the week's gains (USDJPY broke 120 early but faded). Copper and Silver gained modestly, gold was flat, but oil prices slipped 1% lower back below $67. VIX briefly tested below 12.2 but ended the day barely higher at 12.6.

 

US equity futures end the day down from the release of ECB's "nothing" statement this morning… banged around by European headlines…

 

and USDJPY tried to rescue stocks during the ECB conference call… ran the stops over 120.00 then recoupled to fade lower with stocks… fun-durr-mentals

 

On the day, a rescue off the European close dragged stocks green – was then juiced by ECB QE headlines at lunchtime for record highs, but then faded into the close… with a last 30 ramp for good measure

 

which managed to get the S&P barely back into the green On the week, Trannies and Nasdaq are lagging…

 

VIX was actively bid this afternoon – perhaps hedging ahead of payrolls…

 

2nd Hindenburg Omen in 3 days – didn't end well before (2 days after FOMC) and tomorrow we have payrolls…

 

Bonds & Credit notably decoupled from stocks today…

 

as Bonds and stocks remain in different worlds ahead of tomorrow's payroll data…

 

 

As Treasury yields rolled over significantly…10Y under 2.25%, 30Y under 2.95%

 

And the USD closed lower as even with the late-day jawbone they could not rescue EUR back from its strength…

 

Oil prices slipped modestly on the day, silver and copper gained, and gold was flat (with noise around Draghi)

 

Charts: Bloomberg

Bonus Chart: New cycle lows for Shale oil stocks…




via Zero Hedge http://ift.tt/1yXfTsE Tyler Durden

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