The S&P 500 - after failing once again to take out the 1,700 magic line - closed the day just 'off the lows' with its worst day in a week (down a modest 0.1%). Stocks saw their best levels in the overnight session (echoing yesterday's move) and faded from the European open bouncing modestly at the European close. But unlike yesterday, we were unable to hold the bounce and dropped back to the lows of the day. Materials popped (shorts cover) at the open and dumped all day (a pattern seen in every sector). The USD rose in the early morning as the EUR faded but once the US opened the USD slid lower all day as JPY was well bid (back to its highs of the week). Gold (and less-so silver initially) lurched back up to pre-Taper talk FOMC levels (as did the USD) - its best 4-day run in 20 months. WTI held steady around $107 (and the Brent spread ebbed and flowed). Treasuries saw modest weakness on the day (+1 to 2bps) but ended well off the day's worst levels. VIX rose 0.3 vols on the day (more than expected given the equity move). Volume (once again) was entirely abysmal.
Round trip for the week for the S&P 500...
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as The Nasdaq rolls over (AAPL) off the Un-Taper lows...
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Today's exuberance at the open in Materials sector appears all about a big short cover - which faded as the day wore on...
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So Gold and the USD seem to be Un-Tapering and Bonds and Stocks not so much...
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Gold's best 4-day run in 20 months lifts the un-value-able barbarous relic back to pre-FOMC Taper-talk levels...
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Charts: Bloomberg