The S&P 500 is up 8.5% from the 6/24 lows - the best 17-day run since Oct 2011 when the world's central banks launched their unprecedented 'save-the-markets' co-ordinated easing/printfest (as an aside, the S&P fell 140pts(or 12%) in the next 2 weeks). Trannies were on top today (+1.6%) while Nasdaq took the rear (-0.25%); homebuilders are down 2% on the week and 3% post-FOMC while Utilities and Financials are running 2% higher on the week. Aways from exuberant equities, bonds cracked 8bps higher in yield off their pre-Bernanke low yield levels (with the long-end notably underperforming on the week); the USD jumped back up to unchanged on the week (as JPY dumped - aiding risk-assets); and silver and gold diverged with the former holding the week's lows as gold limped higher. The real story of the day is oil prices which screamed above $108 - highest in 14 months - crushing the Brent-WTI spread. Hedgers were active (though clearly not sellers) as VIX notably underperformed stocks (as did credit indices).
Trannies won the day, Nasdaq not so much...
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Hedgers were active...
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Oil surged...
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crushing the Brent-WTI spread...
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and gold outperformed silver on the day...
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Bonds were sold in the face of equity's Taper-off-driven stop-run... with the long end retracing all of Bernanke's exuberance and the belly almost so...
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and FX markets saw the USD bid...
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The last time we saw a run like this in the S&P - it gave back 140pts (or 12%) in the next 2 weeks...
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and it seems like money flow needs to accelerate notably to support the current exuberance (h/t @Not_Jim-Cramer):
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Charts: Bloomberg
Bonus Chart: It's Different This Time...
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