The 4.3% drop from recent highs in the S&P 13 days ago is the largest drop over that period since mid November 2012. The S&P broke its 11-month uptrend and closed below its 100DMA having fallen 11 of the last 14 days post Un-Taper. VIX broke back above 21% briefly (almost its highest level of 2013). Homebuilders were ugly as were the rest of the high-beta momo stocks. Equity markets tracked FX carry (AUDJPY mostly) on the day but the USD ended the day modestly higher (albeit amid wide dispersion). Treasuries were mixed with the short-term battered (1w to 1m Bills +10-15bps!!!!), 2Y +5bps on the week, 30Y -2.5bps (which is notable in that it is not tracking stocks implying some angst over TSY ownership). Gold, Silver and Copper were pushed lower as stock fell but the PMs remain bid on the week. Stocks dived into the close with no VIX monkey-hammering to help; The Dow is now 5.9% off its highs and testing its 200DMA for the first time this year.
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T-Bill yields exploded:
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And Treasuries are diverging with major flattening occuring...
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The S&P lost its 100DMA and its 11-month trendline...
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Since the Shutdown started, indices are down only around 2% (for now)...
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Led by homebuilders and Discretionary...
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Stocks tracked FX carry all day...
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and across asset-clases - Precious Metals are #winning, long bond is seeing some gains, but USD, T-Bills and Stocks are tumbling...
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Charts: Bloomberg