The Russell 2000 is -7.5% from July highs, -3% in 2014, unchanged since last October and year-over-year small-cap performance is the worst since July 2012. Despite four valiant momo-pump efforts to rally stocks to VWAP (to cover institutional sellers), they just kept falling back to bond-market-reality as US equities decoupled lower from JPY after Europe closed. The USD closed unch (after major swings intraday around Europe's close) with GBP strength and AUD/CAD weakness leading it lower on the week. Treasury yields dropped 2-3bps across the curve (down 3-5bps on the week) and all below FOMC levels (30Y -11bps). Gold is now up 0.6% on the week with oil and silver rising modestly. Copper found no bid despite a very slightly better-than-expected China PMI. Financials slipped once again (catching down closer to credit). VIX closed just shy of 15 - 7 week highs.
Ugly close (and SPY broke below its 50DMA after hours) with hevay institutional sells at VWAP
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On the day, the European close signaled risk-off and the ubiquitous Tuesday panic buying in the last hour lifted the S&P to VWAP before a very weak close "not off the lows." Dow down 100+ pts 2 days in row for first time since June.
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Not been a good year for small caps...
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Stocks kept trying but every rally reverted to bond reality
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USDJPY was in charge from US open to EU close then stocks fell back to AUDJPY...
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Stocks are all red post-FOMC with Russell -3%...
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With financials falling back and homebuilders holding losses post FOMC
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Catching down to credit's reality...
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Treasury yields were down again today - with 30Y now down over 10bps from pre-FOMC levels...
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FX markets appeared quiet judging by the USD's unch close but it dumped and pumped intraday on EUR swings - AUD and CAD weakness was offset by GBP strength
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Modest USD weakness helped gold rise and silver and oil end unch. Copper kept sliding...
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Charts: Bloomberg
Bonus Chart: BABA -13% from all-time highs...
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