Equities Fade To Red As Gold, VIX, Bonds Signal Weakness All Day

Tyler Durden's picture

US equities tried to escape the draw of a strong Treasury market and weak gold market all day but kept being dragged back to reality (with a late-day dive on decent volume making the most interesting moment of the day). The day-session range was relatively low but volumes were ok as we leaked lower on the day. NASDAQ was the weakest (thanks to AAPL's push back towards it 'generational low') and TRANS outperformed - but the latter was playing catch up to the rest from yesterday's weakness (still lagging on the week). S&P futures clung to VWAP most of the afternoon in a rather uneventful day even as VIX pushed 0.5 vols higher to close above 17% for the first time in three weeks - notably divergent from stocks. EUR strength (+0.8% this week!), while modestly supportive, has largely decoupled from equity movements this week as correlations across risk assets have dropped notably.

S&P 500 Futures closed back below the 100DMA as they just could not escape the pul of Gold and Treasuries tick for tick moves today...

 

 

and broadly speaking equity markets recoupled with one another today... down 0.5% to 0.9%

 

and VIX is sending signals that fear is growing...

 

and FX dispersion is high as EURUSD leads the way... (we can only think repatriation flows into the year-end are dominating - as it seems the EUR strength- USD weakness, equity strength correlation has broken)...

 

and cross-asset class correlations have collapsed...

 

AAPL was notable today - bleeding all day and following its fade from VWAP game again... down almost 4% from yesterday's highs now.

 

What was most notable was the huge spike in average trade size (middle pane) - something we saw just recently as we topped out...

 

Credit moved with stocks all day.

 

Charts: Bloomberg

 

Bonus Chart: NFLX +14.5% squeezaplaooza as an unknown price was paid for Disney's content at some point in the future... on the highest volume in over two months!

 

Bonus Bonus Chart - wondering why EURUSD is holding in? Not an explanation but it seems like European sovereign risk has been 'managed' back to its 'managed' FX risk - as the recent correlation between the two has become very high...