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Furoius Defense Of S&P 1,800 And Dow 16,000 Succeeds, For Now

Tyler Durden's picture


Retirement is still on for now. Late-minute desperation (in EURJPY) dragged the Dow just back over 16,000 and the S&P limped above 1,800. Bonds were sold (though less aggressively than gold and silver) and the USD rallied as early exuberance gave way to an uglier realization that good-news-is-really-bad-news after all following today's data. Volume was average as VIX continued to rise to 14.3% - its highest close since mid-October as we see the 4th session in a row with selling into the close. Today was the worst frst-day-of-month for the S&P since May.


EURJPY and S&P 500 joined at the hip - clearly EURJPY was the algo lever to ensure an 1,800 close...


4th day in a row of late-day selling pressure...


As VIX is rising rather notably...


Disconnecting further from stocks...


How long before the hedges are rotated into actual unwinds of this?


as credit remains thoroughly unimpressed...


An ugly day for precious oil rallied further



Charts: Bloomberg


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Mon, 12/02/2013 - 17:14 | Link to Comment Tsar Pointless
Tsar Pointless's picture

*Markets* in the red, on the first trading day of the month?

Did Rod Serling just come back from the dead, or what?

Mon, 12/02/2013 - 17:32 | Link to Comment Cult_of_Reason
Cult_of_Reason's picture

Looks like a classic distribution price action. Also, they are fighting to keep indexes above key levels (defending key levels) to suck in more retail investors.

Mon, 12/02/2013 - 17:50 | Link to Comment W74
W74's picture

Red sky in morning: Sailor's warning!?

Tue, 12/03/2013 - 02:01 | Link to Comment Colonel Klink
Colonel Klink's picture

Red skies at night.

-The Fixx

Mon, 12/02/2013 - 17:14 | Link to Comment Al Huxley
Al Huxley's picture

They were so busy pumping the equity markets they forgot to look after the bond market.

Mon, 12/02/2013 - 18:45 | Link to Comment Rainman
Rainman's picture

The equity traderz take a limo to work. dealerz take the derailed train.

Mon, 12/02/2013 - 17:16 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

where is the BONUS CHART!?!

Mon, 12/02/2013 - 17:21 | Link to Comment buzzsaw99
buzzsaw99's picture

a terrible shmelting accident

Mon, 12/02/2013 - 17:23 | Link to Comment infinity8
infinity8's picture

A perfect 10 on the landing for S&P.

Mon, 12/02/2013 - 17:47 | Link to Comment 101 years and c...
101 years and counting's picture

thats a nice round top forming on this bitch.  time for her to go down!!!

Mon, 12/02/2013 - 17:27 | Link to Comment I am Jobe
I am Jobe's picture

Fed Doesn’t Object to Revised Goldman, JPMorgan Capital Plans,+JPMorgan+(JPM)+Capital+Plans/8939038.html

Mon, 12/02/2013 - 17:31 | Link to Comment Kristian
Kristian's picture

Big POMO tomorrow, that'll fix it.

Mon, 12/02/2013 - 17:34 | Link to Comment Tenshin Headache
Tenshin Headache's picture

It's a 2 POMO day tomorrow!

Mon, 12/02/2013 - 17:40 | Link to Comment Al Huxley
Al Huxley's picture

Doh!  I totally forgot.  That POMO schedule should be taped to the wall.

Mon, 12/02/2013 - 17:32 | Link to Comment Doubleth1nker
Doubleth1nker's picture

What is this bizarre, crimson shade of green I'm seeing today?

Mon, 12/02/2013 - 17:39 | Link to Comment Al Huxley
Al Huxley's picture

It must be the discount setup for the double POMO tomorrow.

Mon, 12/02/2013 - 17:37 | Link to Comment thismarketisrigged
thismarketisrigged's picture

lol at the end of the day defense of the s&P and dow to stay above those 1800 and 16,000 levels respectively.


way too obvious, but at this point, they dont care.


lets see what happens tomm.


the excuses i heard for todays red was ppl taking profits for tax purposes

Mon, 12/02/2013 - 17:41 | Link to Comment 1835jackson
1835jackson's picture

Misspelling of Furious. Can I get a hell yeah?!

Mon, 12/02/2013 - 17:56 | Link to Comment BullyBearish
BullyBearish's picture

What's the chance that the double $8B Pomo on December 19 (the day after the FOMC announcement) is planned to boost the market back up after a TAPER?

Mon, 12/02/2013 - 18:16 | Link to Comment Australian Economist
Australian Economist's picture

Where is fonestar? I was wondering if he is accredited

Mon, 12/02/2013 - 18:28 | Link to Comment Yen Cross
Yen Cross's picture

   There will be no withdrawal of Federal Reserve purchases before the debt ceiling debacle is dealt with. Whats got me gnasching my teeth is the deficit tightening. ( who want's to invest in someone that goes drinking all night and prints drink coupons all day?)

   It's difficult to justify foreign bond investment in a sovereign that's printing it's way into armageddon...  Japan

 On the other hand, every central bank on planet Earth has a vested interest to work together, until the inevitable.

  What happens when the inevitable is finally reached? Economies of scale and supply completely break. Regions are marginalized, and utilized for their resources. Same as it ever was...

Mon, 12/02/2013 - 18:28 | Link to Comment The worst trader
The worst trader's picture

New record close tomorrow ,no worries mon. (Jamaican accent) double POMO will insure it.

Mon, 12/02/2013 - 20:14 | Link to Comment Pareto
Pareto's picture

The TRIN was bucking the tape all day today as were the BKX and the Trannies.  It was a sell off late, but, I think if you're short going into tomorrow you will get your ass handed to you, but, that another late day selloff could be in the cards (and a much larger one than today), IMO.

Mon, 12/02/2013 - 21:12 | Link to Comment disabledvet
disabledvet's picture

treasuries dump..."golum like! golum like!"...dollar surges..."smeagles no! smeagles no!" gold drops anchor (Mt Doom! Mt Doom! YESSSSSSSSS! MINE!!) note to all ZH'ers...and planet earth for that matter..."with this much oil now sloshing around (let alone natural gas...and electricity) "energy is in fact acting as a proxy for currency itself." this story wasn't just written 80 years was scripted, filmed, made into a musical and "turned into color" and became the greatest...Blockbuster ever. "do not be deceived by the simplistic nature of the plot. this is no mere pulp fiction and connects in ways even the Director...let alone the viewer can scarcely understand." this is the power of imagination folks...don't get that...don't get anything. nothing defines being human more than being curious...and the inescapable attraction to curiosity itself. "just think he's a funny guy"? think again....

Tue, 12/03/2013 - 00:37 | Link to Comment AngelEyes00
AngelEyes00's picture

I was watching CNBC at closing and there were some worried commentators saying it was the institutional investor that sells late and its happened for a few trading days now.

Makes sense to slowly draw down portfolios while the common people pump up their IRA's, holding the market steady enough to do the same every day until all their buddies have unloaded a big enough chunk they can dump the rest in a few days of freeforall correction.  Then jump back in to take advantage of the bargains. 

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