While the Nasdaq was unable to get back above its crucial 100DMA, it outperformed today (Biotechs went nowhere) as the S&P 500 dipped-and-ripped off its 50DMA (and the crucial 1840 level for bulls). The problem with all this "the correction is over" chatter... nothing else is buying it... Treasury bond yields slumped lower (7Y -15 bps from Friday highs and back to FOMC levels) with 10Y < 2.70% again. Credit spreads on high-yield debt made new swing cycle wides (did not hold teh dead cat bounce gains). Gold jumped back above $1310 (and on a separate note oil prices surged as "tanks" hit the headlines once again in Ukraine). But perhaps the most notable 'negative' for this being anything but a dead-cat-bounce was the collapse in JPY carry - USDJPY's biggest drop in 8 months. VIX was pegged to the S&P 500 all day - but even there we saw notable steepening (as hedgers termed out protection). S&P 500 futures close perfectly at yesterday's closing VWAP.
Since the FOMC, growthy small caps and tech have been pummeled
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but today's bounce was the best performance on the day
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Which left the S&P clinging to green year-to-date...
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VIX clung to stocks all day long...
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As the S&P bounced perfectly off its 50DMA...
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Evident in the intraday chart...
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But bonds didn't...
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As 10Y yield retraced thepost-FOMC move and 30Y remains notably lower...
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And credit was not buying it at all..
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And neither did JPY carry...
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Which is collapsing under the failed hope of additional easing...
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The USD slipped lower as JPY strength sucked money away from all the majors...
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Commodities gained on the day with oil the big winner on eastern European tensions. Gold and silver slipped lower into the close...
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Charts: Bloomberg
Bonus Chart: US Financial stocks have dumped all the way back to credit's less exuberant pre-CCAR self...
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