Crude Carnage Resumes But Stocks Bounce As Hindenburg Omen Strikes

Following yesterday's dead-cat-bounce, oil prices resumed their downward push today, closing just shy of the flush lows on Friday back to a $66 handle for WTI. Gold also slipped modestly with copper and silver flat as the USD surged higher (+0.75% on the day). Stocks just melted up all day long (supported by USDJPY pushing to new cycle highs over 119), stop-hunting the whole way (with the S&P breaking back above its 5-day moving-average and back into the green on the week briefly). Yesterday's losers (Trannies and Small Caps) were today's BTFD winners. Treasury yields rose notably once again (up 11-13bps on the week) as we suspect oil-producers are selling to help support their collapsing currencies. VIX closed below 13 - slammed into the close to scrape the S&P back above its 5DMA.

Victory, the S&P 500 is back above its 5DMA... (thanks to VIX)

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Because when u absolutely have to have the SPX close above its 5DMA... Slam the VIX!!

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As the S&P (and Dow) broke back into the green for the week... but could not hold it

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With the US Open to EU Close ramp where all the gains were...

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As USDJPY could not hold it...

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So VIX was slammed

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As we predicted

DJIA MOC 13/30 for sale means another VIXtermination at 3:59:59:9999

— zerohedge (@zerohedge) December 2, 2014 [12]

Energy stocks remain winners with Utes on the week (even as oil drops and Treasury yields rise)...

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But things are not all they appear under the surface - there is enough anomalous highs vs lows and advancers vs decliners to trigger the Hindenburg Omen. Despite numerous false alarms, the last one - as Fed QE effect slowed - was a dramatic signal indeed...

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And we note that CoT has not been keeping up with the index surge...

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Treasury yields continue to increase notably this week.. which smells a lot like either rate locks for floods of new issuance (which we are not seeing) or...

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