Draghi has one message for everyone today...
US equities had their worst day since September 28th...
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US Treasuries were a bloodbath...
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European equities were an even bigger bloodbath...
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As DAX gave back all its Paris gains... (down over 500 points and back below 10,700)
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As European bonds utterly crashed... (Bunds seen here across the curve were massive percentage moves)
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All driven by The 3 'D's...
- Domestic Terrorism hinted at... and the use of the word 'radicalized' spooked a number of markets
- Draghi Disappointed - grossly over-promised and under-delivered, trapped in a corner of QE limitations and admitt8ing it failed.
- Dire Data - US macro plunged to its lowest level in 6 months... (bonds seem to get it)... with durable goods, factory orders, and ISM Services all crushing The Fed's narrative.
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* * *
On the day, Trannies were worst but broadly speaking, the entire equity market dumped in a highly correlated manner... (notthe bounce into the EU Close then dump)
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FANGs are not helping...
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Futures show it's been quite a week and now all major indices are red post-Russia-Turkey...
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After Europe closed, stocks kept falling...
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Some notable breaks:
- All major US equity indices are now negative year-to-date (aside from NASDAQ)
- S&P 500 broke below its 200DMA (also got close to it 50DMA before bouncing)
- Dow broke below its 200DMA
- Small Caps (Russell 2000) broke below its 100DMA
- Trannies broke below all technical support to 2 month lows
Biotechs plunged from the 100DMA to break the 50DMA...
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Commentators were confused why Energy stocks dropped while oil rose... this is why - they had decoupled from raw reality a month ago...
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VIX soared over 3 handles - almost touching 20 and breaking above its 50, 100, and 200DMA... This was thebiggest percentage rise in VIX since Black Monday
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Treasuries were a disaster, extending losses after Europe closed...
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Credit markets have been crushed with the junkiest junk now at 6 year high yields...
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The USD Index crashed 2.25% - its biggest single-day drop since March 2009.... (having hit 12 year highs yesterday) Put another way - today's lack of ECB action had the same effect on the USD as The Fed's unleashing of QE in 2009!
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Led by Swissy and EUR strength...
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Gold is now the week's biggest gainer in the commodity space (crude the loser) as the entire space picked up on USD weakness...
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Crude's been volatile heading into tomorrow...
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Charts: Bloomberg