Closing Wrap

This is just a sample of how extreme some of the underlying damage was today...

 IWM 1 m

IWM 3m

 QQQ 1m

QQQ 3m

SPY 1m

 SPY 3m

XLF/financials 1m

XLF 2m

XLF 5m

XLK/Technology 3m

XLK-Same as above, but within the trend

All of that for this...

 Dow 15k, we were at $14968 yesterday, I should have seen that coming.

What is surprising is that they couldn't use any of the traditional levers

SPY Arbitrage at a -.73 differential, which is pretty big, why couldn't they use the levers?

Because traders were busy using them for real, not for intraday manipulation.

THIS IS ACTUALLY QUITE AMAZING THAT THEY CAN PUSH THE MARKET TO SUCH EXTREMES AS ALL THE FRAMEWORK IS FALLING TO PIECES, BUT I HAVE A GOOD IDEA HOW THEY DID IT.

 HYG (High Yield Corp Credit which is the favored way for institutional money to express a bullish sentiment) not only couldn't surpass its highs from yesterday, it was moving down all day today, I'll show you the actual selling later, look at the last 15 minutes of trade, it seems HYG was used to some degree, even if was to halt the decline in HYG, then sellers just pushed through.

HYG is now making a more definable near term divergence in Leading Indicators.

 Junk Credit is High Yield because of the risk, it's not typically used to manipulate anything, but traders wanted nothing to do with this market all day and especially left in a hurry near the close.

 High Yield Credit was selling off all day. Those alone say a lot, very few people realize how insightful credit is.

 However look at the flight to safety trade, long dated treasuries/ TLT, this should normally be making a new low with the SPX making a new high, it has absolute support, traders have been establishing positions there all year and they aren't selling them.

 VIX Futures (VXX moved in a normal short term correlation in green and then moved against it in red as traders were more concerned with hedging exposure and buying protection, it literally sent VXX higher with the SPX which you don't see often, differences in relative performance-yes, but outright demand pushing against the correlation, not often.

 VIX futures like TLT also have a floor in and normally would be making a new low, they won't because the buyers there are too aggressive, they are afraid.

 Commodities didn't even move close to the SPX today, but in the afternoon they resumed all out selling.

 There's a lot more, I'll show you some pretty amazing movements today, they won the battle for 15k, but looks like they are about to lose the war, however we all know they are on the right side of the trade.

More to come