For the 5th time in 5 days, equity markets dropped back below their May 2013 all-time highs only to be rapidly bid back above that magical level into the close. Stocks in general went nowhere fast with another heavy volume dip and light volume rip to close the day near VWAP. Nasdaq continues to outperform from the last FOMC meeting (up over 4%) even though Tech is unchanged since 6/19. Homebuilders are the drag (down 5.5% from the last FOMC). Treasuries ended the day unchanged (selling back from a 5bps yield compression across the US open after housing data disappointed). AUD continued its overnight weakness (as did GBP) but the USD managed only very modest gains on the day. Gold flatlined as the rest of the economic-commodities slipped lower (WTI at $103 with spread to Brent testing $4).
Do not panic!! The Dow closed red for a second day in a row for the first time in six weeks!
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Another day of bounce off the 5/22 previous all-time highs...
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But The Dow has a great pattern...
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But since the last FOMC equity indices are all up...
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Even as homebuilders have suffered...
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Treasuries rallied on weaker data then crept higher in yield as stocks bounced...
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Gold was relatively well-behaved as the rest of the econ-sensitive commodities slipped south...
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Charts: Bloomberg