It's beginning to get hard to ignore the carnage coming from China...
So Macro data is collapsing...
Commodities are collapsing...
And earnings expectations are tumbling...
Obamacare repeal trump'd commodity carnage and then stocks clung to unch...
The Dow is unch post-Fed, bonds and stocks lower.
..
VIX was smashed lower after the Obamacare Repeal vote, desperate to keep Nasdaq green to show what a great thing this Bill is...
The S&P 500 has now closed within a point or so for 8 days...
USDJPY ended at the lows of the day...
Commodity carnage was the theme of the day as tightening Chinese financial conditions combined with collapsing WMP issuance are sucking the exuberance out of stocks, bonds, and industrial metals...
The Dollar Index tumbled, back below pre-French election levels..
And 30Y yields back below 3.00% (despite another kneejerk higher)...
For now, Trannies and Small Caps are the only ones seemingly aware of reality as Nasdaq tech malarkey remains open bid...
Brent broke below $50, WTI ended with a $45 handle and RBOB below $1.50... There will be blood...
Citi FX traders noted that as for WTI from here, we’ve noted that $47.00 is the level to watch on a weekly closing basis. Now testing $45.90, our oil colleagues warn that there’s “capitulation out there.”
Open interest has reached a record high. Directionally, in addition to unwinds, fresh selling has been noted since late April - even before players took focus on the (now distant) 200d MA.
That selling continues in this downturn. Psychological support is undoubtedly the $45 area and should that go, those constructive oil will likely get quite worried. Of course there’s OPEC but with the market now fully expecting a 6m extension, that announcement may have fleeting impact.
The crude carnage smashed the Ruble to 2-month lows (testing its 100DMA...
Meanwhile, Silver ETF is down 14 days in a row - and all-time record run...
