Some interesting developments in the COT report (discussed below) with commercial getting positioned for risk on.
Though today felt very rangebound, equity for the most part leaked lower in a rather methodical, stealth like fashion since the opening pop. In fact post the FOMC peak of last Friday morning, equity has slowly leaked lower.
I say stealthy because it appears rangebound, but clearly prices have continued to drift lower. Imagine drifting like this down to SPX 1,000? It’s also worth noting that the Transports are not “drifting.” they are falling hard, down another 1% and based on weak fundamentals from the shippers. That is one sector not buying the Fed QE hype.