Yesterday, the S&P and Nasdaq bounced hard off the pre-payrolls level from Aug 1st. From the moment US cash equity markets closed yesterday, stocks have been dropping back. But now, thanks to this:
- SIKORSKI: RUSSIAN UNITS POISED TO PRESSURE OR INVADE UKRAINE
- SIKORSKI: RUSSIAN INCURSION WOULD BE HUGE ESCALATION OF CRISIS
- SIKORSKI WARNS RUSSIA ON IMPACT OF CONVENTIONAL WAR IN EUROPE
The Dow, S&P and now Nasdaq have tumbled below yesterday's lows, eradicating all the post-payrolls gains in stocks. Treasury yields are tumbling (5bps off highs) and gold and silver and rising.
All payrolls gains gone...
This is what it looked like close-up... as just 7k S&P e-minis crushed lqiuidity
— rockhowse (@rockhowse) August 5, 2014
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Of course, as anyone but the machines knows, Poland has been desperate to get a NATO response from the start, and has been hinting at an "imminent" Russian invasion for at least 4 months