It would seem that the day after Tuesday is not Tuesday… and so stocks sold off. The Russell 2000 is now 3% off its Monday highs, comfortably red for the week, and back below its crucial 200day moving-average. The Nasdaq is also down with the 50DMA crossing death-like below the 100DMA. Of course, it is the "you can't trust the signals" bond market that is making the real headlines as 10Y yields slump to fresh 7-month lows breaking notable support. The USD leaked lower on the day (but USDJPY was stable under 102) as ECB talked back some of the recent EUR losses. Commodities all pushed higher with silver up over 3% onthe week, gold back over $1305, and WTI over $102. VIX pumped-and-dumped at the open but could not sustain weakness as 330RAMP saw VIX's slam unable to drag stocks notably higher.
Something odd happened today at 330ET:
Was 3:30pm cancelled today?
— zerohedge (@zerohedge) May 14, 2014
From CNBC we have two wonderful quotes:
1) "You can't trust the signals of the bond market" – but you can 'trust' stocks (apart from the ones that are going down)
2) "Buy what's going up" – which we asume applies only to stocks and not bonds, which are going up
Monday's ecstatic highs – the day before Tuesday – seems a long way off now…
JPY stayed engaged until late in the day when stocks were dumped…
But there's a long way to catch down to bonds
It's a bit of a stretch but we did see Biotechs (and momos in general) take a dive after SEN. LEVIN SAYS HE WILL INTRODUCE BILL ON INVERSIONS THIS WEEK – maybe , just maybe we just saw the M&A bubble hope burst…
VIX pumped-and-dumped at the open and then at 330ET – the slamdown failed to ramp stocks
As Treasury yields tumble…
and 10Y breaking key support…
The ECB comments on QE saw EUR rally back some of its recent losses and pressure the USD lower…
And commodities rallied with gold and silver well bid and oil back over $102…
The NYSE broke for 90 minutes today and provided a breather for stocks from D to J – as is clear with FB – which rallied uring the NYSE breakage then dumped
Charts: Bloomberg
via Zero Hedge http://ift.tt/RRH1Ii Tyler Durden