Don't panic. Change is good. The S&P 500 futures market somehow dropped 1.25 points today - its worst in 10 days! - and yet, shock horror, data was positive, European leaders offered more jawboning support, and Treasuries weakened. NYSE volume remained bleak but S&P 500 e-mini futures (ES) volume rose to its highest in over a week (yes - we were stunned too - volume picked up as selling began) amid reasonable average trade size (especially as ES lost 1400). After VIX's implosion yesterday, it ramped over 1.25 vols higher today - testing back to 15% late on. The USD leaked higher all day, back to unchanged on the week (while Copper/Gold/Silver are all down 1.2-1.3% on the week - having gapped down on positive data this morning). Oil remains green on the week and spurted modestly higher on the day. Treasuries are still under pressure - not getting much back as equities sold off into the close - higher/steeper in yield by 4-8bps on the week now. Of course - the closing rampfest was inevitable as that stunning 4 point drop in ES was rapidly 'tickled' back up to near VWAP into the day-session close - though we note that ES was unable to get green and unable to reach the safety of VWAP with heavy 'down' volume after-hours. Cue 'Asian-opening-gap-worm' algo.
What? A red close in ES? also note how the 50 and 100 DMA are getting close to a bullish cross...
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Equities (blue) ignored the good-is-bad news that gold/FX/TSYs saw initially but in the end leaked back down to the same levels...
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FX markets - while the USD is unchanged on the week now - are very dispersed with AUD weakness (carry off?) and EUR strength relative to the USD...
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Commodities are clumping together in a QE-off sense - though WTI remains bid as Iran headlines among other things hold it...
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and highlighting the late-day stick-save...
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note ES closed at the pre-Asian-gap levels and volume ramped up notably as we sold off...but of course in the end...
Last Second Stick Saves Will Continue Until Morale Improves
Charts: Bloomberg