"Psychologically, We Closed Positive" - 8th All-Time High Dow Up-Day In A Row

Tyler Durden's picture

Because all that matters is the Dow, as one intellectual giant noted - whether we close red or green "psychologically, we closed positive." Unfortunately, AAPL closed at its lows, Nasdaq -11 points, S&P 500 futures in the red perfectly balanced at their VWAP (which saw nothing but selling all day) for the fifth lowest volume day of the year (following yesterday's lowest volume day). The S&P stayed in its uptrend channel as the USD-Stocks correlation algos gave up today - as did the Treasury-Stocks algos. 10Y closed -3bps on the week (-6bps today). HY credit closed at its lows, VIX rose 0.75 vols today at 12.3% - leading stocks south, and while commodities pulled back off early spike highs, they are all in the green on the week (with gold just shy of $1600 intraday). While it is of little import as the sixth consecutive all-time Dow highs is all that counts for the headlines this evening, we would note that we haven't seen such weakness in AAPL and selling pressure at VWAP in S&P 500 futures for a while (and that was with a 19/30, $650 to the sell side MOC in the
DJIA).

 

S&P 500 futures VWAP was resistance all day as every ramp was hit with volume selling...

 

as it appears Treasuries did not play along with stocks late-day rally from yesterday...

 

but S&P 500 futures stayed in their up-channel for now...

 

even as credit and rates slipped away in the last hour equity ramp...

 

Commodities pulled back off early spikes with Gold almost tagging $1600 and Silver and Oil recoupling...

 

The algos were certainly in charge for much of the US day session as an overnight dump and pump in EURJPY failed to spark an initial equity move of risk-assets (as proxied by Capital Context's CONTEXT model below)

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: The S&P 500 has had 49 rallies and 27 sell-offs in the last hour of the day over the course of this rally...

 

Bonus Bonus Chart: Financials have once again run way ahead o credit into the CCAR extravaganza...