Rumor Ramp Reverses Rout

Tyler Durden's picture

We saw what happened yesterday when the unknowable vote went exactly as everyone expected - the supposedly totally-priced-in equity market dumped. Today, the rumor is that a deal is on the cards and sure enough S&P 500 futures ramp almost 20 points. Interestingly, this ramp has stopped just as Gold and stocks have recoupled relative to each other on the week. Of course, once the rumor is flatly denied or rejected, we would expect little to no selling pressure in this broken market because there is always hope...

The last 3 times the S&P got back to even with gold, it sold off relatively...

 

as is clear here...

 

Charts: Bloomberg