The last few weeks have been the strongest and most consistent rallies in US equity market history. US equity markets have traded above their 5-day moving average for 27 days - the longest such streak since March 1928 (h/t MKM's John Krinsky) and all amid GDP downgrades, missed PMIs, and downward earnings outlook revisions. Given the holiday week, it is hardly surprising volume was weak today. Stocks were very mixed today with Russell 2000 and Nasdaq leading the way (along with Trannies) as Dow and S&P showed very small gains - to record highs though. Bonds were also bid with a strong 2Y auction extending the drops in yields (0-2bps) led by 7Y. The USDollar fell 0.4% - led by EUR strength - as JPY, CAD, and AUD all weakened. Despite USD weakness, oil (big drop intraday), copper, and gold also dropped on the day with silver ending +0.25%. VIX dropped to 12.66 - its lowest close in over 2 months.
27 days and counting for the S&P... an 86 year record... (within a year of this exuberance stocks had doubled and then halved!!)
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This is what happened the last time the market did that...
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On the day, Dow lagged, Small Caps led...
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As eveything was playing together until the HFTs got control of AAPL and smashed Nasdaq higher...
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But yet again bonds weren't buying it
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Treasuries were also bid...
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The USD lost 0.38% on the day- but CAD, JPY, and AUD all weakened as EUR strength drove USD weakness
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But that did not help commodities as Oil tumbled notably intraday
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Charts: Bloomberg
