Despite Late-Day VIX Slam, S&P Slides Back Into Red For 2014

Tyler Durden's picture

While victory was declared yesterday, today was a let-down for the exuberant. High beta (NASDAQ and Russell) pushed on but the S&P, Dow, and Trannies slid leaving the NASDAQ YTD best performer (+1%) and the S&P back into the red for 2014. Financials underperformed, Utilities outperformed. Treasuries rallied all day - with the long-end underperforming and a notable flattening across the curve (30Y -2bps on the week, 5Y +2bps). The USD had a quiet day as JPY strengthened modestly (hence the weakness in the S&P) as overnight AUD weakness (poor jobs data) left that carry pair alone in the dark. VIX and credit markets have been notable underperformers relative to stocks in the last 2 days. Commodities were quiet all day with some early downside pressure in the precious metals unwound (leaving then down 0.5% on the week). Of course, it wouldn't be the US equity market without the ubiquitous VIX slam attempt to ignite momentum and get the S&P green - it failed for once!

 

 

VIX is not amused... (but of course - the last few minutes saw a VIX smasher...)

 

Nor is credit...

 

But the NASDAQ and Russell don't care - if it worked yesterday, it will tomorrow, right?

 

on the day the late-day ramp saved the NASDAQ from a red close and rammed Trannies higher...

 

Treasuries rallied back into the green for the week...

 

Commodities were relatively quiet aside from some pressure in the early European session...

 

Charts: Bloomberg

Bonus Chart: Stock Sentiment vs Bond Sentiment is at a worrying level for stocks bulls (h/t @Not_Jim_Cramer)