Stocks dumped (EU weakness)-and-pumped today with the majors ending marginally higher (except the Trannies down 7 of last 9 days). The Dow Transports are down over 6% from record highs - the worst slide since Feb 2014. The Russell is down over 7.5% from its peak (and the rest of the majors are playing catch-down from that turning point). The S&P bounced perfectly off its 100-day moving-average. Gold and silver jumped notably higher (gold +1% on the week) after more invasion headlines early on. Oil slipped. Treasury yields mimicked stocks, falling early to 13 month low yields and rising (selling TSYs) after Europe closed to end modestly lower ion yields on the day. The headlines though were focused on the plunge in the US Dollar (driven by a surge of JPY buying around lunchtime). Credit markets tracked stocks moestly but we note one pulled high-yield deal today (unusual). When AUDJPY quit on stocks, VIX took over, rammed back under 15.8 to ignite stocks but pushed higher after Europe closed.
The S&P bounced perfectly off its 100-day moving-average...
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VIX was the ignition method...
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As AUDJPY gave up...but stock fun-durr-mentally recoupled by the end...
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It seems the Sikorksi "Invasion" levels were where stops were - so stocks were auctioned up to run them and ran out of buyers...
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But the S&P closes unch, Russell positive and Trannies down on the day...
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Story of the day was when $3-5 billion notional flushed through JPY futures (and cash FX volumes lit up)...
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Which dragged the US Dollar lower on the day...
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From Russell 2000's peak, it's down around 8% and while the rest of the majors ignored the drop to start with, they are catching down now...
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Treasuries - like stocks - roundtripped on the day... after touching 13-month low yields in 10Y...
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Gold and silver jumped but oil and copper slipped on the day...
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Charts: Bloomberg
