Despite Late-Day Ramp, Stocks Slide As Yield Curve Flattens To 2009 Lows

Tyler Durden's picture

Despite dismal PMIs from China and USA, stocks managed a miraculous 'pump' into the US open only to be unceremoniously dumped very soon after as MoMos and Biotechs had the rug pulled out. Weakness continued down to Nasdaq's 50DMA (and Biotech's 100DMA) and stabilized into the European close when soon after, via the magic of EURJPY, stock rebounded back to VWAP. Alas, it was not be the day for the bulls as VWAP-selling hit hard in the last hour... until the good fairy 330RAMP CAPITAL came along, and punched VIX in the mouth in a desperate attempt to regain green and get the Dow positive post-FOMC. Unlike many fairy tales though, this one ended sadly ever after. Stocks down, USD down, Gold down, VIX up, Yield Curve down to 2009 levels.

 

Despite the exuberant rebound in stocks...helped by the magic of VIX-crushing algos...

 

Stocks were unable to hold green on the day and remain red post-FOMC

 

Post-FOMC, Builders and Healthcare are equally bad as Financials continue to cling to gains ahead of this week's CCAR...

(despite Financial credit having deteriorated notably)...

 

USDJPY remained generally in charge (with some EURJPY thrown in soon after the EU close)...

 

A day in the life of an S&P 500 futures contract...

 

The Nasdaq has seen the biggest high to low drop in 2 days for 9 months...

 

But the most important chart of the day is the ongoing collapse of the term structure... this is the biggest 4-day slide in the curve since the US downgrade in summer 2011...

 

As the Treasury complex was mixed - 10s and 30s rallying and shorter-dated selling off further...

 

Even though the USD fell notably as a sudden rush out of USD and into EUR occurred around the EU close...

 

Gold and silver slipped (-1.8%)

 

Charts: Bloomberg

Bonus Chart: Nasdaq Biotecth Index bounced perfectly off its 100DMA

 

Bonus Bonus Chart: Breadth is not exactly confirming this move... (h/t @Not_Jim_Cramer)