Equity Futures At Friday's Lows

Tyler Durden's picture

It seems a few humans have read a little this weekend and sold into the algo-induced euphoria from Friday's close. S&P 500 futures are down around 9 points - at the lows from Friday's day-session. EUR is bleeding modestly and JPY is weakening as equities appear to be recoupling with FX as a risk-driver (following EUR's dislocation two weeks ago). Cash Treasuries are yet to open but futures infer 2-3bps compression in yields. Much was made of VIX's 'strength' on Friday as some kind of tell; unfortunately misunderstanding is rife and it is evident that hedges were in fact rolled out into January (rather than lifted in any bullish manner). So far stocks are pushing back down to recouple with VIX's view of the world. Silver is flat at $30, Gold and Oil down a little. 6 more hours til Europe opens.

S&P 500 futures (ES) have dropped back to the lows of the Friday day-session...

Equities and FX markets appear to have recoupled for now (blue oval) after EURUSD's decoupling two weeks ago and AUDJPY's decoupling last week...

 

and close-up shows the idiocy of the last hour on Friday - now recoupled with reality...

 

And it is clear when looking at the price action that spot option protection was rolled out to January (and still remains notably priced away from equity's pollyanna world for now)...

 

Gold has caught down to Silver...

 

Charts: Bloomberg