What a day. No other way to describe it. Whether it was short covering or longs finally jumping in who knows. Internally it was certainly bullish with breadth well over 2,000 for the entire session at one point pushing over 2,500. That is a very bullish number which means buying was broad based.
Even volume was OK today. Not massive but at least not an historic low. But not all asset classes were “buyers of Draghi’s plan” though. Commodities, primarily oil and copper were not only down on the session but put in decent intraday reversals.
Credit clearly sold off as risk was on. The upbeat economic data is what likely fueled higher yields beyond the ECB announcement. And though the AUD/USD was up in support of risk assets, the EUR/USD was less upbeat about the Europe is saved plan. And they have a good reason for such caution as the video below explains.
Volatility fought to hold the 16.05 level given earlier for the model, but in the end was unable to hold. The vix uptrend is not over but clearly weakened today.