Markets had a brief moment of reflection on Tuesday...
But that was rapidly shrugged off as a fleshwound...
This was a historic week for the S&P 500 - This most recent rally has now surpassed the 1959 highs and is the most overbought the index has ever been... ever...
For context that is a 133% annualized return for SPX thus far in Jan implies 6220 year-end index level.
Small Caps were today's big winner...
Small Caps were helped by yet another big short squeeze...
Banks had a big week (MS notably outperforming GS)...
Perhaps most notably, for the second week in a row, S&P and VIX were higher together... the first time since Nov 2013.
The notable decoupling between VIX and S&P has been ongoing all year...
And we suspect is more aggressive call-buying bidding up vol than protection.
High yield bonds broke below their key moving averages again this week, notably underperforming equities...
Treasuries were mullered - with the belly underperforming...
as 10Y spiked above it recent highs to the highest yield since Sept 2014...
The Dollar Index fell for the 6th straight week...
Despite the considerable comeback, Crypto ended the week down hard...approximately 20% lower from Friday's close for each of Bitcoin, Litecoin, Ethereum, and Ripple...
This was Bitcoin's 2nd worst week in 3 years and worst 2-week drop since 2011...
Gold has been notably outperforming Bitcoin in the last two weeks...
But all major commodities ended the week lower (despite a weak dollar)...
