A day dominated by geopolitical headlines saw stocks hit 4-month lows, gold jump to 3-week highs, and bond yields tumble to 14-month lows. The Dow made new "sell in May" lows today, now -1.5% from end-April (joined in weakness since then by the Russell). The S&P 500 broke its 100-day moving-average (and did not bounce) as USDJPY broke the critical 102.00 level. The Dow stalled at its 200-day moving-average (16343). 10Y Treasury yields continued to plunge pressing a 2.41% handle – new 14-month closing low-yields. Gold jumped above $1315 closing near the highs of the day (and silver above $20). The USD ended up on the day but JPY carry unwinds continued. VIX broke back above 17 (and remains inverted for the 10th day in a row). Equities continues to catch down to high-yield credit's weakness. A late-day buying-panic, sparked by VIX-slamming, was triggered as S&P futures broke 1900.
Gold reacted notably to every headline…
USDJPY was in charge (as EURJPY was off limits thanks to ECB and AUDJPY blew up last night)… 102.00 was all that mattered… fun-durr-mentals
Interestingly, The Russell 2000 remains green on the week with Trannies worst…
All the major indices are at or breaking key technical levels… (except Russell which is holding below)
"Sell In May" is working…
Stocks continue to slide towards credit's warning levels…
VIX pushed back above 17… but once the S&P 500 futures dropped to 1899.75, VIX was rammed lower…
With the VIX term structure inverted for 10 days now…
10Y Yields close at 14-month lows…
as the week sees compression accelerating
FX market were active with the USD ending higher – balanced between EUR weakness (Draghi's jawboning was mostly undone though) and JPY strength (carry unwinds)
Gold is up on the week as today saw oil prices start to react more as Iraq headline shit…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1vhkvu2 Tyler Durden