SPY Has Just Done Something It’s Never Done Before

SPY Has Just Done Something It’s Never Done Before

It appears “clots” won’t stop this meltup…

…as early weakness was met by a wall of buying around the CPI print and a replay of the reflation bet (Big-Tech up, Small Caps down) at the cash open. Nasdaq was the day’s best performer, S&P closed green as Dow and Small Caps erased most of their losses for a small down day…

The Dow was hampered from its exuberance by JNJ’s modest drop.

Underneath the surface, the market is assuming a defensive posture today led by mega-cap Tech and the bond proxies — Utilities and Real Estate (yields on 10-year Treasuries are back down to 1.63%). On the flip side, the procyclicals – Industrials and Financials – are lagging.

Source: Bloomberg

Notably, however, the defensive tilt is taking place in an environment of relaxation, not anxiety. The VIX is down again today to 16.6 — nearing the 15 level that the VIX was camped out at during long stretches of the pre-pandemic/post-GFC era. VIX has now closed below 20 for 10 straight days – something it hasn’t done since Feb 2020

Bonds were bid with with 5Y-10Y segment outperforming…

Source: Bloomberg

A very strong 30Y auction helped…

Source: Bloomberg

The dollar continued to drift lower…

Source: Bloomberg

Crypto surged above $2.1 trillion market cap today with Bitcoin above $63k for the first time…

Source: Bloomberg

And Ether surged above $2300 – a new record high…

Source: Bloomberg

Dollar weakness helped send Gold higher…

WTI managed to close back above $60 ahead of tonight’s API data…

And finally, this is the 13th day in a row where the S&P 500 ETF (SPY) closed above its opening price…

Source: Bloomberg

Since SPY’s inception in 1993, that has never happened before.

Additionally, in the last 21 days, the Nasdaq is up 6% with the average breadth (advancers-decliners) across the Nasdaq at 147.

Source: Bloomberg

This hasn’t happened in the history of Bloomberg data.  

Tyler Durden
Tue, 04/13/2021 – 16:00

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