Wednesday is the new Tuesday. From the moment equities closed yesterday, they rallied on another macro data-less day. The US open sparked another JPY-based run higher and then the pump-and-dump after FOMC cleared the way for VIX - which closed at its lowest in 9 months (on the day the FOMC warns of complacency concerns) - to lead stocks back to the week's highs. Credit was not as excited - just like Monday (before Tuesday's reality-check for stocks). Goldman took the shine off things late on by explaining to BTFD'ers that "there were no surprises" and stocks faded modestly [4]. Treasury yields closed higher (2-3bps) but rallied post-FOMC. Gold down modestly, USD flat, and WTI crude up to almost $104.
VIX... at 9-month lows on the day the Fed said " LOW VOLATILITY IN MARKETS MAY INDICATE COMPLACENCY"
[5]
The S&P 500 never looked back from yesterday's close...
[6]
Post-FOMC...
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As shorts were squeezed once again...
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When stocks ran to the highs, it was all VIX...
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As Bonds and JPY disconnected...
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Just as stocks disconnected from credit in Monday and reconnected on Tuesday, so we saw Wednesday so the same...
[11]
Treasuries rallied post-FOMC (as stocks did)
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The USD dumped after the FOMC...
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and here's your day across asset classes...
[14]
Charts: Bloomberg