This is the first 3-day losing streak at the start of a month since September 2011. Despite the best efforts of the machines to lift stocks into the green (which NASDAQ managed very marginally), Bonds closed near their high yields of the day, the USD roundtripped with weakness in the US session leaving it unch for the week. S&P futures closed the day-session perfectly at VWAP as many noted the inversion of the VIX term structure once again (short-term 'fear' above medium-term 'fear'). The day's action was punctuated by 4 things - ADP beat (sell), ISM miss (rally-hard), Obama "inequality" (sell hard), BTFD (levered carry ramp 'blamed' on budget deal rumors) - which left the S&P entirely adrift from its relationship with FX carry and Treasuries by the close (amid the heaviest volume in a month). Precious metals had their best day in 7 weeks.
The day in the S&P... VWAP was king (note the lack of volume in the levitation)...
Gold's best day in almost 7 weeks...
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Disconnected...FX carry
[5]
Disconnected... bonds
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and VIX term structure inverted...
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And for those hoping for a squeeze of the shorts... they really didn't lay too much out here...
Charts: Bloomberg