Yesterday we saw that JPY crosses lost their momentum-igniting effect on stocks as US equities suffered. This morning has seen the machines fall back to their old standard - the VIX slammer. However, while VIX is being slammed, stocks are not rising as much as expected. Trannies are back into the green year-to-date but we note more importantly that this most recent wrench higher has lifted S&P 500 futures to yesterday's closing VWAP - a crucial levels for market-making algos to make money. Silver is spiking once again; bonds are selling off very modestly (+2bps) and the USD is fading slightly.
S&P back at yesterday's VWAP on this ramp... (let's see if it holds or the big boys sell at VWAP)
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helped by VIX...
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Which has lifted Trannies green YTD...
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And silver is lifting too once again...
