The S&P 500 is up 8.5% from the 6/24 lows - the best 17-day run since Oct 2011 when the world's central banks launched their unprecedented 'save-the-markets' co-ordinated easing/printfest (as an aside, the S&P fell 140pts(or 12%) in the next 2 weeks). Trannies were on top today (+1.6%) while Nasdaq took the rear (-0.25%); homebuilders are down 2% on the week and 3% post-FOMC while Utilities and Financials are running 2% higher on the week. Aways from exuberant equities, bonds cracked 8bps higher in yield off their pre-Bernanke low yield levels (with the long-end notably underperforming on the week); the USD jumped back up to unchanged on the week (as JPY dumped - aiding risk-assets); and silver and gold diverged with the former holding the week's lows as gold limped higher. The real story of the day is oil prices which screamed above $108 - highest in 14 months - crushing the Brent-WTI spread. Hedgers were active (though clearly not sellers) as VIX notably underperformed stocks (as did credit indices).
Trannies won the day, Nasdaq not so much...
Hedgers were active...
Oil surged...
crushing the Brent-WTI spread...
and gold outperformed silver on the day...
Bonds were sold in the face of equity's Taper-off-driven stop-run... with the long end retracing all of Bernanke's exuberance and the belly almost so...
and FX markets saw the USD bid...
The last time we saw a run like this in the S&P - it gave back 140pts (or 12%) in the next 2 weeks...
Charts: Bloomberg
Bonus Chart: It's Different This Time...
