S&P Regains 50DMA As Bonds/Stocks Rally Post-Europe

Tyler Durden's picture

Early macro data that was mixed (retail sales, Kansas Fed, Claims, some GDP ugly) saw stocks limp a little off the overnight hope highs but once the day-session opened in the US we were off to the races with stop-runs galore triggered by Boehner (down), Reid (up and down), Schumer (up) as the fiscal cliff idiocy hangs Damocles-like over every algos trigger finger. Treasuries largely ignore the afternoon schizophrenia - trending lower in yields as once Europe closed the USD drifted lower and bonds and stocks were bought in a 'we-heart-USA' style. High-yield credit had outperformed in the mid-afternoon but stumbled a little - notably after news of the SVU PE deal failed to fund. Commodities had a good day in general though we note that Gold/Silver is at its lowest level in nearly nine months as Silver has significantly bounced off its spike lows this week. Gold and stocks continue to recouple with the latter more volatile but the anchoring on VWAP and spike-to-stop-run swings are making the intraday behavior of equity indices become a little more farcical by the day.

 

S&P 500 futures had quite a day...

...closing back above its 50DMA

 

Post EU Close - USD drifted lower and Stocks and Treasuries were bid...

 

and across the capital structure ETFs (HYG outperformed, TLT was signalling more weakness and VXX and SPY clung to one another)...

 

Commodities continues to push higher...

 

but Gold/Silver is now at near nine-month lows...

 

So while all the chatter today will be about the political swings - the real 'regime' shift was a major decoupling after Europe closed... on weakness.

 

Charts: Bloomberg and Capital Context