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Capitulation? Stocks Hit With 4th Largest 'Sell Program' In History This Morning

Tyler Durden's Photo
by Tyler Durden
Thursday, Jun 16, 2022 - 03:05 PM

The difference between upticks and downticks on the NYSE this morning hit a stunning -2,057. There have only been three other 'sell programs' of this size or larger in market history...

On the three prior events (6/11/20, 5/11/21, 9/20/21), the S&P bounced in the following days...

But, as the following chart shows, it's different this time - The Fed Balance Sheet is shrinking!!

In case you think this is the 'capitulation' moment, BofA suggests no...

This is a list of “capitulation” levels in various FMS and other positioning indicators.

FMS indicators mostly are at capitulation levels...the one exception is short-term interest rates...normally at a “big low” investors universally expect central banks to panic and cut rates...in 2022 the central bank panic is in the other direction, hiking rates to desperately reverse their excess stimulus of 2020 & 2021.

Put simply: Equity flows are not near capitulation levels.

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