An ugly and very heavy volume flush into the European close was followed by the kind of miraculous v-shaped low volume recovery traders have become used to in US equity markets. Having broken below several key technical levels, high beta Russell and Trannies soared (fortgetful it seems that Europe will once again open for business in about 8 hours) to close comfortably in the green on the day. VIX was rammed lower (under 16) to support the exuberance along with EURJPY and AUDJPY. The USDollar faded to close unchanged on the week. Gold flatlined while silver slipped. Oil collapsed early on only to v-shape recover to close modestly higher on the day. Treasury yields bounced 3-5bps higher (after yesterday's huge plunge) but remain 7-10bps down on the week. By the close, The Russell 2000 had its best day in 6 weeks and the S&P's buying-panic scramble to perfectly unchanged – miraculously avoiding the 4-day losing streak not seen since Sept 2013.
UNCH!
V-shaped recovery… A post-European close buying-panic drags the S&P 500 to perfectly unchanged – to the penny!! and saves it from a 4-day losing streak not seen since Sept 2013.
With Homebuilders leading and Energy lagging…
as "most shorted" stocks were squeezed hard once again…
Helped by VIX
And AUDJPY and EURJPY…
Treasury yields bounced but remain well lower on the week…
The Dollar faded (as EUR strengthened on Draghi's disappointing performance) back to unch on the week…
Gold flatlined despite the USD weakness but oil cratered early (again) along with silver (again) only to v-shape recover later on…
WTI Crude futures saw heavy volume selling in yesterday's dump but the early Europe session's collapse was marginal volume at best and by mid-day Europe, crude was resurging
Charts: Bloomberg
via Zero Hedge http://ift.tt/1tl1TCV Tyler Durden