JPY Stick Saves Stocks From Worst Streak Of 2013 Following Hindenburg Cluster

Equity markets gapped up at the cash open and the S&P regained 1,700 briefly, then dumped along with JPY strength on decent volume only to be rescued almost as fast after the European close (on JPY weakness) dragging the S&P back up to test 1,700 once again. Once 1,700 was regained, volume departed and until the last few minutes, stocks did nothing (ignoring JPY post-30Y Auction) with a drop at the close in the futures (but a green close to break the worst streak of 2013) The 3rd Hindenburg Omen in 4 days shows the level of anxiety in this volumeless levitation as highs/lows/advancers/decliners signal all is not well amid the major JPY-carry-unwind. Treasuries managed small gains on the day (and week) and while credit markets rallied modestly they remain notably underperforming in this afternoon's equity spike. As JPY weakened and dragged stocks higher, VIX also collapsed but going into the close, it was clear hedgers were active. Gold, Silver, and Copper all surged on the day, WTI dropped (helped by RINs dump to only 67c).

The 3rd Hindenburg Omen in 4 days as new highs and new lows show under the surface all is not well...

The S&P 500 (Cash) index gapped up to 1,700; dropped precipitously, ramped back to 1,700 then...

As for the month of August, Homebuilders are the worst, Financials practically unch and Materials and Discretionary en fuego (so far)...

Spot the correlated asset-class...

Treasury yields have reverted to practically unch for the week...

While in FX markets, the USD has been hammered on JPY and EUR strength...

Credit markets did rally on the day with stocks but remain notable underperformers..

VIX and stocks tracked each other as JPY moved until after lunch when hedgers returned...

Aggregating cross asset-classes we saw ETFs clinging closely to one another (below left - SPY vs HYG/TLT/VXX) but in the broader risk-markets, stocks pulled away, corrected back into the European close, then pulled away again...

Charts: Bloomberg and Capital Context