Equities closed red for the third week of the last four with today's selloff reducing about half of yesterday's gains. The 5.25% high-to-low drop (in the S&P 500) was bid on low volume yesterday but heavier volume today was to the downside. While stocks were sold, Treasuries were bid and had their best week in over two months (as some level fo safe-haven Syria bid was evident - as well as de-Tapering chatter). What was interesting is that the USD - typically bid when war tensions rise - is weaker - its worst 3-week run since October 2010. JPY strength (+3.25%) was the main driver of USD weakness. Precious metals were bid instead as Oil and silver coincided up around 2% on the week. Financials were the worst sector on the week as, thanks to yesterday's ridiculousness, homebuilders went from zero to hero and ended the week +1%. VIX rose 0.5 vols on the week with its highest close of the year.
All the indices ended the week red... (with only Trannies managing green in the latter part of the week)...
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and sectors all ended in the red aside from homebuilders...
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The USD had its worst 3-week slide since October 2010 (even with war fever re-igniting - which typically sees safe-haven flows)...
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as bonds were bid (on safe-haven and slight Taper expectation reductions)... Bonds' best week in over two months..
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Precious metals and Oil were well bid in the last few days... interesting that Silver and Oil recoupled on the week perfectly... (with a now-standard 2.5% spike at the NYMEX open!!)
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VIX ended with its highest weekly close of the year...
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And across the major asset classes - correlations appear to be breaking down...
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Charts: Bloomberg and Capital Context