Just as we warned at the end of today's nonsense, the afternoon ramp is fading fast now as the sad but true reality of a sun that rises in Europe awakening the maddening crowd. EURUSD is at 1.2970 (70 pips off the late-day swing highs already), ES (S&P 500 e-mini futures) are down 10 pts from the closing swing highs (which just happens to coincide with Sunday night's gap-down opening level around 1354.25), Silver has slumped back to the day's lows around $29, Gold back under $1600, and WTI is down around 2% from the day-session close at around $96.50. Treasuries are leaking lower in yield but FX markets seem very active as AUD drops to near parity with USD and carry pairs are generally weak. There are still a few more hours until Europe opens so anything can happen but for an overnight session, markets are not happy.
EURUSD not happy at all...
and nor are US equity futures...
But commodities are getting hammered again overnight (margin calls?)...
Once again - the intraday reality of credit markets (Corporates and Treasuries) is seeing equities converge lower to shake off that end-of-day insanity ramp. Clearly signaled by equity futures dropping back to CONTEXT (broad risk asset proxy) - though the latter is also fading fast this evening...
...and for the next time some equity analyst talking head scoffs when you tell them you use credit market information in your analysis - here is Bank of America's equity reality check writ large post stress-test results...just saying...
Zero Hedge
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