Stunned Stocks Slide On Soaring Volume; Worst Swing Day In 5 Weeks

Today saw the largest high to low drop intraday (down over 2.3%) in the S&P 500 for five weeks as it fell back to the 'Tepper Top'. Volume was the 3rd highest of the year. As expected, high-beta muppets were hurt most; Trannies were the worst performer in the major equity indices (down 1.6% on the day and 2.5% from the Bernanke highs early on); homebuilders dropped 3.7% from their earlier highs, and Morgan Stanley slumped 4% from its earlier highs. VIX (up most in 5 weeks at 14.0%) and credit markets (biggest widening in 4 weeks and HYG dropped by its most in 6 months from its intraday highs) saw major weakness (extending the bearish divergence with stocks). The USD rallied back to unchanged on the week and commodities slipped lower (gold and silver end the day slightly higher on the week). What's so special about today? The S&P 500 dividend yield just equilibrated with the 10Y yield for the first time since April 2012... where would you rather 'reach for yield'...

Quite a day...

 

Small bounce into the close but not a pretty day...

 

Exuberance - the S&P 500 broke above its six-month trend channel today... final straw?

 

as the S&P 500 broke down to Tepper's Top

 

Bonds and Stocks yield the same...

 

'Most-Shorted' names recovered the week's squeeze and slumped back to in-line with the Russell...

 

The USD rallied back to unchanged on the week - which weighed on commodities in general...

 

Charts: Bloomberg and Capital Context

This seemed to sum it up nicely...