The entire week followed one simple script. Pre-market strength leads to opening bell buying followed by a session of selling with markets closing on the lows. And today was no different. It’s become textbook in a way and indicative of a shift in sentiment.
By the dip has now been replaced by sell the rally. For the most part today was a true risk off day with all asset classes working in accordance with their historical correlations. The only asset class that remains somewhat stuck is that of the currencies. It’s as if they are waiting for someone to make the next move.
It’s interesting to see the vix close on the highs and green on a Friday. Something we do not normally see. It’s also worth noting how Treasury, primarily 30 year broke some key levels and held all session. The 30 year had been fighting the urge to move higher (lower in yield) but is now showing leadership and indicating further risk off to come.