Equity markets were stumbling lower into the close of the US day session and volume was picking up… the powers that be clearly decided that was not to be allowed and the NASDAQ needed to close green (as we noted previously). JPY was not going to help as overnight volatility had reduced carry games so… slam dat VIX was the game. While not much in nominal size, the 0.3 vols smackdown in VIX starting at 1550ET lifted the S&P 3.5 points to close at the afternoon highs (and helped NASDAQ green and new highs)… But, seconds later (as INTC and AXP earnings disappointed), the entire ramp – and more – was dissolved before S&P futures closed. Ah, the efficient markets…
S&P 500 Cash index traders were treated (green oval) to a late-day VIX smashdown momentum ignition fantasy to lift the index up to highs… and then (as is clear from the futures in blue, the markets crumbled after hours)…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1dymvmV Tyler Durden