After escalating higher and higher in the last few days as the rest of the market slipped further into the red for 2014, the Dow Transports has collapsed 3.25% at this morning’s open – its biggest drop in 9 months. This, along with the plunge in the NASDAQ and Russell has dragged every major US equity index into the red once again for 2014… VIX has spiked to 15.4% – its highest since pre-Taper as JPY carry unwinds drag US equities lower once again… Credit markets have no retraced all post-Taper gains (and stocks are rapidly catching down).
Of course, the driver of the weakness is JPY carry unwinds…
Credit has led the way and now eradicated all gains post-Taper…
Charts:Bloomberg
via Zero Hedge http://ift.tt/1mCaqOS Tyler Durden