Draghi's Dike Defended As Market Ends Week Range-Bound

Tyler Durden's picture

As we noted this morning, today seemed more about defense than offense (even though stocks managed to rally off Draghi's Dike twice). Dow 13,000 and S&P 1400 remain safe. Today's theme is 'V-shaped-recoveries' as AMZN managed some magic last night, AAPL managed some super-magic intraday - bouncing off its 200DMA and then fading into VWAP to close on volume, and S&P futures oscillating between post-Tuesday highs and lows all day (with the ubiquitous dump to VWAP into the close after the 3pm ramp on cue).  

 

 

Dow was weakest -1.7% on the week as Nasdaq managed to riggle back up today to a 0.6% loss on the week. The USD gained 0.5% on the week, perfectly matching the 0.5% loss in Gold. Silver ended the week unchanged and Oil -4.8%. Treasuries recovered their losses from yesterday to end the week mixed (5Y +1bps, 30Y -3bps) and VIX leaked back under 18% by the end of the week as realized vol has increased (and protection was lifted). Equity markets were very much on their own in the land of happy ponies and cuddly unicorns today with risk-assets in general bleeding lower into the close. Sunday is sure gonna be fun...

Some significant intraday vol this week but Tuesday's big plunge (GOOG) was the major event and the rest was oscillation at Draghi's Dike lows...

 

leaving the S&P at the lows after 3 decent pushes lower...note we sqw volume and size-blocks come in at the highs into the close as the stop-run worked and enabled a few more out...

 

Credit markets were mixed - HY bonds (green) underperformed this afternoon; IG spreads (dark red) outperformed and HY spreads (red) and stocks (blue) reracked together

 

AAPL's round the world trip - twice - ending with a voluminous plng eback down to VWAP after selling into yesterday's VWAP... the bounce at the lows was within a pt or so of the 200DMA...

 

Commodities in general lost ground on the week (Silver unch) but Gold matched the USD's implied-loss of value and both PMs rallied for the last two days (admittedly with some lumpiness)...

 

and perhaps the most-telling charts are of equity performance relative to its capital structure (Vol/Rates/Credit ) on the left and broad-risk-assets (CONTEXT) on the right - which were both signaling far less confidence into the weekend...

Go Giants!

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL Longer-Term: Highest volume in 6 months and bounced off 200DMA...