Party-Pooper Powell Ends Short-Squeeze, Stocks Stall

With the machines in charge again, we suggest:

 

China saw a couple of 'mysterious' buying panics at the open and into the close to put a little lipstick on that pig...

Is that what's known as double-intervention?

 

European Stocks had a bad day, erasing much of yesterday's bounce...What you mean Italy is not fixed?!!

 

And take your pick in US stocks - Dow dumped, Nasdaq and Small Caps managed nothing... Cash equities were a choppy, gappy mess all day...

Furtures show the chaos even better...the US ramp as China closed (and National Team stepped in), the dump at the cash open and ramp after EU closed... then chaos after The Fed...

 

October remains red...

 

Post-Fed, equities initially dipped, recovered, then faded along with bonds leaving the USD the only asset higher

 

 

The S&P, Dow, and Nasdaq all failed to extend gains above the next technical level...

 

The Dow failed to hold its 50% retrace of last week's drop...

 

The Dow was weighed down by IBM which collapsed after earnings last night... And The Nasdaq benefitted from NFLX's surge...

 

Bond yields accelerated higher after The Fed - recoupling with stocks as bopth got sold...

 

Treasury yields rose relatively quick on the day off the early lows (but ended up 1-2bps)

 

But remain in a very narrow range still..

 

The Dollar Index extended gains overnight and then further still after The Fed Minutes back up near one-week highs...

 

Despite higher fix, yuan slipped weaker all day ahead of the Treasury Report (which everyone and their cat knows will not say "currency manipulator")...

 

Mixed bag in Cryptos with Ripple higher and Bitcoin Cash and Litecoin lower...

 

Dollar strength sent PMs lower but WTI plunged extending losses after inventory data...

 

WTI tumbled below $70 testing its 50DMA...

 

Gold and Silver continue to tread water after last week's spike...

 

The relative copper and gold movements in recent weeks have shifted to suggest Treasury yields should be notably lower...well below 3%

 

Finally, we note that yesterday's massive short-squeeze seems to have expended all the momentum algos' ammunition...