Whatever Nanna put in the Christmas punch was vicious! Maybe she was tired of seeing her retirement plays going south. Monday's low participation gave way to today's average volumes but extreme positive breadth readings.
US Indices on Wednesday's close: SPX: (+4.96%), NDX: (+6.16%), Dow: (+4.98%) and RUT: (+4.96%)
Volume was about average for the SPX and NYSE total. While things get pushed around easily in the holiday week, the technicals are still valid...even if the deep hole has reduced us to using the longer term moving averages but also that 5 day average. The Energy complex led the tape on oil's bounce.
NYSE A/D Lines: +2234. NYSE breadth: 28.25:1 and NASD breadth: 10.51:1. SPX volume: 2.732B vs 20 day average of 2.783B. NYSE total volume: +62.24% relative to Monday. NYMO: bounces from above the Feb low to -52.386 and VIX is now just above the 6 Feb low while PCC ratio fell to the upper band of the ytd median. NYSE MOC: fairly flat with +120M to buy.
The ES futures profile is going to be hard to show you as it's so long. Suffice it to say that there is a very long single print spike higher that needs repair. If the does not gap higher traders will still be looking to the area between 2430 and 2478 for repair. If SPX gaps higher then they will remember that cleared spike. The overnight session is now within the 20-21 December value areas, the top end of which is about 2495.
SPX bounces from its 200 week moving average and is back in the point of control for 2017. It is also above its 5 day average. Dow bounces from just below its 150 week average. NDX bounces out of its 2017 point of control. RUT has bounced from its 300 week moving average and is still below that vpoc. Here is a weekly quad view and the weekly quad ETF view.
The USD was up a half percent and GCG9 Gold is biding its time around the 50% retrace of the August lows in electronic trade.
Treasuries took a hit with yields rising across the curve with the 2-year (+3 bps to 2.60%) to 10-year (+5 bps to 2.80%) spread now at 20 bps and the 2-year to 30-year (+5 bps to 3.05%) now at 45 bps. There was a 41B dollar 5-year treasury auction with a high yield of 2.652%/when issued 2.628% vs (2.734% 12 auction average); Bid to cover: 2.09 vs 2.47; Indirect bid 53.6% vs 61.1% and Direct bid 9.6% vs 9.3%. The bid to cover ratio and indirect bid were far below average. ZNH19 is flat at the moment as bond traders wait to assess the power of equity traders.
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