While hard data has been hovering at 2-year lows, soft data has been rebounding recently... until today - The ISM Services index saw its steepest m/m decline this month since the financial crisis.
Mueller headlines spooked stocks at the end of the day but the machines had one message for investors...
Trannies had a great day - what were you all worried about? as oil tumbled; NOTE the dip on Mueller headlines...
But The Dow 20,000 was rescued again with a healthy VIX clubbing...even as it plunged on news that Mueller would impanel a grand jury in the Russia probe...
The Dow is extremely overbought...
The Dow is up 8 days in a row and 7 record closes in a row, dramatically outperforming everything else...
We note that the Russell 2000 broke below and closed below its 50DMA... (more reliant on US domestic revenues as opposed to the handful of names driving the Dow higher every day that are dominated by overseas revenue)
And for now Trannies are trading between their 100- and 200-DMA for the last 5 days...
While there has been some wild action in Nasdaq and The Dow, the S&P has gone nowehere in the last 11 days...
Making for the lowest closing range this year...
In fact - the last 11-days have been the quietest in the 90 year history of Bloomberg's S&P data...
this is the lowest max-min range for 11 days of closing S&P 500 levels in history, log scale used to show just how extreme this 'slowness' is.
Of course, the day wouldn't be complete without some market shenanigans - this happened to AAPL around 1245ET...
Treasury yields tumbled once again on weak data and the Mueller headlines...
This kicked 30Y yields to 5-week lows...
Meanwhile yields on US Corporate High Yield bonds dropped to 3-year (near record) lows...
The Dollar Index ened the day lower once again, kneejerked lower on ISM early and Mueller later...
EURUSD remains unsure if it wants to break up or down...
Gold bounced back to almost unch from its flash-crash last night and crude slipped back to post-Inventory data lows as the oil market's biggest bull shuttering his fund sent WTI to its lowest close in a week...
“When you don’t have a lot to go on, sometimes a headline like that can be enough to get a few people to cover and get a few computers to light up,” says Phil Flynn, senior market analyst at Price Futures Group.
Let's see what happens with Gold tonight at 1906ET?
Reminder - its payrolls tomorrow - so buy any reaction dip!
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Finally, it is perhaps worth noting that 'Murica is becoming less relevant in the world of stocks too... US market cap as a percentage of world market cap dropped to its lowest since May 2015 this week...
Bonus Chart: The Trump-Anxiety-O-Meter hits a record high...
It's time to update the @realDonaldTrump Stock Market Tweet-O-Meter. Going parabolic. pic.twitter.com/GBJYRY2Fw7
— SentimenTrader (@sentimentrader) August 3, 2017