Today was a true risk on day, for whatever reasons. Commodities and Treasury supported equity for a change. FX less so, though the EUR and DX were more in line with the equity moves. The true measure of risk on or off is the AUD and it was up a mere 20bp on the session. Though muted, NYSE breadth was up plus 1382 issues which is slightly bullish but not overly.
AAPL which triggered short earlier in the week did a healthy retrace to the 675 level as anticipated and then pulled back, not participating in the rally. We have seen AAPL diverge before for a session or two so no sense making much of this yet. But if AAPL does in fact continue the downtrend and a sustainable one as the model is profiling, this should put pressure on equity markets next week.
